Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Industry ChartersFinancial Services CharterCode Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic EmpowermentInterpretation Note on Code FS100, Statement 1002. Illustrative example: Ownership Scorecard of Bank A as at 31 December 2010 |
Calculations:
| a) | Effective Voting Rights and Economic Interest attributable to Black People (paragraphs 2.1. and 2.3 of the scorecard): |
= (total number of shares (voting rights) attributable to Black People (less) number of shares (voting rights) sold as a result of the June 2009 dilution) / total number of baseline shares
= 8/100
= 8%
Add percentage allowable via continuing consequences:
A = B x C x D
Where
A is the percentage of rights of ownership that survive the sale/loss of an Equity Instrument by a black participant in paragraph 3.5.1.2 to 3.5.4.3.
B is the percentage of rights of Ownership for each of the indicators in the ownership scorecard that were attributable to the black participant immediately before his or her sale.
C The net value realized/created in black hands after the liquidation of debt as a % of the value of the Sale Shares of each of the indicators immediately prior to exit. The net value created in black hands is equal to the current value of the shares less any own contribution made by the BEE party at the inception date of the transaction.
D is the most recently determined BEE Recognition Level of the Measured Entity (which must be less than 1 year old) based on its Generic Scorecard result for all Elements other than ownership determined using statement 000.
For paragraphs 2.2, 2.4 and 2.5, A shall be equal to the percentage held by Black Women/Designated Groups immediately before their sale of shares multiplied by the result of the calculation under this paragraph 5.1.
A = 2% X ((24 -16- 2) I 24) X 110%
= 0.55%
Therefore performance under paragraphs 2. 1 and 2.3 of the scorecard = 8.55%
| b) | Effective Voting Rights and Economic Interest attributable to Black Women (paragraphs 2.2. and 2.4 of the scorecard): |
| = | total number of shares (voting rights) attributable to Black Women / total number of baseline shares |
| = | (50% of 8.55) /100 |
| = | 4.28% |
| c) | Effective Voting Rights and Economic Interest held by Black Designated Groups (paragraph 2.5 of the scorecard): |
| = | total number of shares (voting rights) attributable to Black Designated Groups / total number of baseline shares |
| = | (75% of 8.55) / 100 |
| = | 6.41% |
d) Net Equity Value attributable to Black People (paragraph 2.6 of the scorecard):
= the sum of points from Formula "A" and Formula "B" below
Where:
Formula A is the points available for Net value attributable to the actual remaining shares as per the standard formulas; and
Formula "B" is the points from Net Value attributable to the sale shares as per Formula B below.
Formula "B"
A = B X C X D
B is the percentage of the Equity Instruments diluted, determined on the date of measurement immediately before his or her sale.
C is the value of the equity interests sold (less) the value of any own contribution made at the inception date of the deal in relation to the shares sold (less) the carrying value of any acquisition debts of the relevant Black Participants on the date of sale or loss divided by the value of the measured entity at the date of sale or loss.
D is the the recognition level of the measured entity excluding Ownership immediately prior to the loss or sale.
A = 2% x ((24 - 2 - 16) / 1440)) x 100%
= 0.01%
Points available = 0.01
| e) | Direct or Indirect Ownership in excess of 15% (paragraphs 2.7 of the scorecard): |
= 0%
| f) | Bonus Points |
• Ownership Attributable to black new entrants (paragraph 2.8 of the scorecard)
= (50% of 8.55) / 100
= 4.28%
| • | Ownership Attributable to black ESOPs and Co-Ops (paragraph 2.9 of the scorecard) |
= (50% of 4.28) / 100
= 2.14%
Ownership Scorecard of Bank A as at 31 December 2010
Ownership |
Points |
Targets |
Bank A |
Points Scored |
||
|
3 |
25% + 1 Vote |
8.6% |
1.03 |
||
|
1 |
10% + 1 Vote |
4.3% |
0.43 |
||
|
3 |
25% + 1 Share |
10% |
1.2 |
||
|
1 |
10% + 1 Share |
8.6% |
0.86 |
||
|
1 |
2.5% |
6.4% |
1 |
||
Ownership Fulfillment |
|
|||||
|
3 |
A/B |
A |
0.01 |
||
|
2 |
10% |
0% |
0 |
||
Total |
14 |
|
|
4.52 |
||
Bonus Points |
||||||
|
2 |
10% |
4.3% |
0.85 |
||
|
1 |
10% |
2.1% |
0.21 |
||
Total Including Bonus Points |
17 |
|
|
5.58 |
||
The Ownership scorecard from 31 December 2011 will be unchanged because the dilution that occurs on 1 January 2011 is as a result of the deal maturing and BEE (Pty) Ltd electing to sell to non-BEE parties.