ABET |
Adult Based Education |
the Act |
the Broad-Based Economic Empowerment Act, No 53 of 2003 |
AE |
Associated Enterprise: Must be a sustainable business or opportunity; transfer of specialised skills or a productive capacity; no unreasonable limits on customers or clients; not limited to customers, clients or suppliers of seller; outsourcing of services at arm’s length on a fair & reasonable basis; not licence or franchise. |
ARG |
Adjusted Recognition for Gender, as calculated in terms of Annexe 400(B). |
Black New Entrant |
Black participants who hold rights of ownership in a ME and who, before holding the EI in the ME, have not held EI’s in any other Entity which has a total value of more than R20 million, measured using a standard valuation method |
Black People |
Natural persons who are citizens of the RSA by birth or descent; or are citizens of the RSA by naturalisation (a) occurring before the commencement of the constitution of the Republic of South Africa Act of 1993; or (b) occurring after the commencement of the Constitution of South Africa Act of 1993, but who, without the Apartheid policy would have qualified for naturalisation before then. |
BBBEE |
Broad-Based Black Economic Empowerment |
the Codes |
the Codes of Good Practice on Black Economic Empowerment published in Government Gazette number 29617 on 9 February 2007 |
DNV |
Deemed Net Value, as calculated in terms of formula 3 of Annexe 100(C) |
EI |
Equity Instrument; the instrument by which a Participant holds rights of ownership in an enterprise. |
Entity |
A natural or a juristic person conducting a business, trade or profession in the RSA. |
Global Practice |
A globally and uniform applied practice of a Multinational, restricting the alienation of equity in or the sale of business in its regional operations, which practice existed before the promulgation of the Act. |
INED |
Independent Non-executive Director |
INPM |
Indicative Net Profit Margin, is the profit margin in the last year where the ME’s profit margin is at least 25% of the industry norm. |
Leviable Amount |
As defined in the Skills Development Levies Act of 1999 and determined using the Forth Schedule to the Income tax Act of 1962. |
ME |
Measured Entity, being the enterprise that is in the process of being measured |
Multinational Business |
A ME with its business in the RSA and elsewhere which maintains its international headquarters outside the RSA. |
NPAT and NPBT |
Net Profit After Tax and Net Profit Before Tax, being the operating profit of a ME after and before tax, as the case may be, incorporating both equity / loss figures and abnormal items, but excludes extra ordinary items as determined by Generally Accepted Accounting Practices |
Net Value |
The percentage resulting from the formula in Annexe 100(C) of Statement 100. |
SED |
Socio-Economic Development as per Statement 700. |
Standard Valuation Method |
A standard valuation method for an asset, and economic interest, or any other instrument or right relevant to measurement under Statement 100, undertaken using normal valuation methods that represent standard |
Start-up Enterprise |
A recently formed or incorporated enterprise that has been in operation for less than 1 year, but excludes mere continuations of a pre-existing enterprise |
Total Labour Cost |
The total amount of remuneration paid by a ME to its employees as determined under section 3(4) of the Skills Development Levies Act of 1999 and the Forth Schedule of the Income Tax Act of 1962. |
Top Manager |
Employees of a ME who hold rights of ownership, serve on the Board, undertake the day-to-day management, have overall responsibility for the overall financial management and are actively involved in developing and implementing the overall strategy of the ME. |
Total Revenue |
Is the total income of an entity from its operations as determined under South African Generally Accepted Accounting Practice |
QSE |
A Qualifying Small Enterprise, being any enterprise with an annual Total Revenue of between R5 million and R35 million |
QT |
Qualifying Transaction, being sale of a business, valuable business assets or shares that results in the creation of sustainable business opportunities and transfer of specialised skills or productive capacity for black people. |
Value Adding Enterprise |
A registered VAT vendor whose NPBT summed with its Total Labour Cost exceeds 25% of the value of its Total Revenue. |
