Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment

Statement 100: The General Principles for Measuring Ownership

8. Options and Share Warrants
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8.1Exercisable voting rights and Economic interest will be recognised where a participant holds an instrument granting the holder the right to acquire an Equity Instrument or part thereof at a future date, if the following requirements are met:

 

8.1.1The Exercisable Voting Rights attached to that instrument are irrevocably transferred to the holder for the option period and are exercisable by the holder before acquiring the Equity Instrument;

 

8.1.2The value of any Economic Interest is irrevocably transferred for the option period and paid to the holder of that instrument before the exercise of that right;

 

8.1.3The value of an instrument must be determined by using a standard valuation method for calculating the Net value.