Electronic Communications Act, 2005 (Act No. 36 of 2005)RegulationsAmendment Regulations in respect of the Limitations of Control and Equity Ownership by Historically Disadvantaged Groups (HDGs) and the application of the ICT Sector Code, 2021Explanatory MemorandumGeneral |
| 21. | General |
| 21.1 | The Authority’s understanding of the HDG Equity Requirement as provided for in the EC Act is that equity ownership by any person(s) who fall within the applicable categories will suffice for complying with the HDG Equity Requirement. Having equity ownership from all the applicable categories is not a requirement. |
| 21.2 | The Authority has decided not to include provisions relating to the limitation and control of ownership in these Regulations because such provisions will relate to more than just the promotion and advancement of B-BBEE and HDG. The Authority intends pursuing the limitation and control of ownership aspects referred to in the Position Paper in future regulatory reviews. |
| 21.3 | Notwithstanding that these aspects will be dealt with in future, the Authority has noticed that there is some confusion, particularly regarding the issue of “control”. For the purposes of clarity, the Authority accordingly deems it appropriate to outline its approach to control in the memorandum attached hereto as Annexure A. |