CODE 100: OWNERSHIP SCORECARD

Area

Target

Weighting Points

% of Points

Formula

Notes

1. Voting Rights in Enterprise

 

 

 

 

 

In hands of Black people

25% + 1 vote

3

15%

(actual / target) X 3

 

In hands of Black women

10%

2

10%

(actual / target) X 3

 

2. Economic Interest in Enterprise

 

 

 

 

 

To Black people

25%

4

20%

(actual / target) X 4

 

To Black women

10%

2

10%

(actual / target) X 2

 

To Black natural people in -

2.5%

1

5%

(actual / target) X 1

 

Black designated groups
Employee Ownership Schemes
Broad-based Ownership Schemes
Co-operatives

See Annexe 100B for the rules that apply to such entities as well as trusts. A Broad-Based Ownership Scheme is one where Black people receive 85% of benefits, ≥ 50% of the participants are not employees of the ME, ≥ 50% of the participants are Black people, and ≥ 25% of the participants are Black women

3. Realisation

 

 

 

 

 

Ownership Fulfilment

No 3rd party rights

1

5%

Must have 7 Net Value points to earn this point

3rd party rights are legal or commercial rights that restrict withhold or defer any benefit associated with ownership of any EI.

Net Value

 

7

35%

Net Value % = the lower of (a) DNV x (1/.25 x tt) (b) (actual % in 2 / target in 1) x 7

DNV = (Value of EI – debt) / value of the entity time target (‘tt’) = year 1: 10%, year 2: 20%, year 3: 40%, year 5: 60%, year 7: 80%, year9: 100%

4. Sale or Loss of Shares (limited to 40% of ownership scorecard score)

 

 

 

Actual 1 in 2 above before sale x Net Value % x most recent BEE recognition level not older than 1 year on all other scorecard elements

ME can retain portion of ownership points following sale or loss of shares held by BEE shareholder if (a) BEE shareholder held shares for at least 3 years (b) value is created in hands of BEE party (c) transformation has taken place

5. Bonus points

 

 

 

 

 

Black new entrants

10%

2

 

(actual % in 2 / target in 1) x (actual in 1 / 25) x bonus points

 

Involvement of –

10%

1

 

(actual % in 2 / target in 1) x (actual in 1 / 25) x bonus points

 

Employee Ownership Schemes
Broad-based Ownership Schemes
Co-operatives

 

 

 

 

 


Statement 102: Sale of business, assets or Equity Interest

A ME that has concluded a transaction involving a sale of assets, EI or business with an AE may claim these benefits in its ownership scorecard. The scorecard calculated in terms of this statement is included in the ME’s overall score in terms of Statement 100, and does not stand in isolation thereto.

1. Voting Rights in Enterprise:

 

 

 

 

 

In hands of Black people

25% + 1 vote

3

15%

Indicator % is the % compliance of the AE for all indicators of the AE ownership scorecard, i.e., using the actual % compliance for each indicator and not the resulting scores. For years 1 – 3 after the transaction use data current on the date of measurement. Thereafter use the indicator % on the date of measurement and values of QT and the benefit to the seller in year 3.

In Hands of Black women

10%

2

10%

 

 

 

 

2. Economic Interest in Enterprise

 

 

 

To Black people

25%

4

20%

To Black women

10%

2

10%

To Black natural people in -

2.5%

1

5%

 

Black designated groups
Employee Ownership Schemes
Broad-based Ownership Schemes
Co-operatives

 

 

 

 

 

3. Realisation

 

 

 

 

 

Ownership Fulfilment

No 3rd party rights

1

5%

 

 

Net Value

 

7

35%

(value of EI held by black people in AE – debt) / value of QT

Using a Standard Valuation Method

Statement 103: Equity Equivalents of Multinationals

 

Equity Equivalent Programmes (‘EEP)

 

 

 

 

 

Limited to Multinationals subject to a Global Practice

 

 

 

Once-off contribution: (value of contributions / value of 4% of SA revenue target annually over period of continued measurement) x 20

Using a Standard Valuation Method

1. Value of Multinational’s SA Business

25%

20

100%

 

 

2. % of Total Revenue of Multinational’s SA business

4%

20%

100%

Contribution annually over 10 years: (value of total contributions prior to measurement / 25% of value of SA operations) x (1/0.25 x tt) x 20

Using a Standard Valuation Method time target (‘tt’) = year 1: 10%, year 2: 20%, year 3: 40%, year 5: 60%, year 7: 80%, year 9: 100%