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

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Forwarding and Clearing Sub-Sector Code for B-BBEE

3. Indicators of Empowerment (to achieve this vision)

3.1 Ownership

3.1.3 Stakeholders Undertakings

Purchase

3.1.3.1

Foreign Ownership Market Commits to:

3.1.3.1.1

Seek opportunities to sell equity to Black shareholders or participate in Equity Equivalent programmes approved by the Minister.

3.1.3.2

The Local Based Market Commits to:

3.1.3.2.1

Seek opportunities to broaden the ownership base of their companies and ensure that within the next 5 years at least black shareholders hold 25+1% of voting rights, with 10% of the voting rights held by black women.

3.1.3.2.2

25% of the economic interest accrues to black shareholders in the form of both voting rights and economic interest, with a minimum of 10% earmarked for black women.

3.1.3.2.3

3% is for black designated groups, which includes black people living with disabilities.

3.1.3.2.4

Ensure that the net economic interest of the black equity participants is 100% of their acquired share of the business within 5 years.

3.1.3.2.5

Qualifying Small Enterprises (QSEs) as defined in this Sub-Sector Code also commit to:

3.1.3.2.5.1

Increase the ownership base of their companies and ensure that a minimum of 25% of economic interest is in the hands of black people;

3.1.3.2.5.2

25% + 1 vote voting rights, or equivalent thereof, are in black hands; and

3.1.3.2.5.3

Ensure that the net economic interest of the black equity participants is 60% of their acquired share of the business within 5 years. If this is achieved, it will be deemed that Ownership Fulfilment has been achieved.