Electronic Communications Act, 2005 (Act No. 36 of 2005)

Regulations

Amendment Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDGs) and the application of the ICT Sector Code, 2021

Appendices

Appendix 1: Methodology to be used to compile Credible Assurance Report

4. Application of Ownership Principles
Purchase cart Previous page Return to chapter overview Next page

 

The following examples illustrate the method of calculating indirect ownership in a Licensee through one or more intermediate juristic persons:

 

4.1 If an individual who falls within any of the categories set out in clauses 2.1.1.1 to 2.1.1.4 owns 40% of the share capital of Company A (the intermediate company) and Company A owns 70% of the share capital in a Licensee.
4.1.1 The individual’s indirect ownership in the Licensee is calculated by multiplying the individual’s interest in Company A by the percentage interest Company A holds in the Licensee (40% x 70% = 28%).
4.1.2 For the purpose of determining compliance with the HDG Equity Requirement, the individual will be deemed to hold 28% of the issued share capital in that Licensee.

 

4.2 If an individual who falls within any of the categories set out in clauses 2.1.1.1 to 2.1.1.4 owns 40% of the share capital of Company A (the intermediate company) and Company A owns 70% of the share capital in a Company B which holds 20% of the Licensee.
4.2.1 The individual’s indirect ownership in the Licensee is calculated by multiplying the individual’s interest in Company A by the percentage interest Company A holds in the Licensee (40% x 70% = 28%; 28% x 20% = 4%).
4.2.2 For the purpose of determining compliance with the HDG Equity Requirement, the individual will be deemed to hold 4% of the issued share capital in that Licensee.