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

Industry Charters

Purchase

5.1	Enterprise creation:

5.1.1

If the Equity Equivalent contribution of the entity involves the creation of a new enterprise:

5.1.1.1

The new enterprise must qualify as a Value-Adding enterprise;

5.1.1.2

The creation of the new enterprise must comply with the requirements for a Qualifying Transaction as defined in statement 102;

5.1.1.3

The creation of the new enterprise cannot contribute to the entity's score under Code series FS600; and

5.2	Investment in social advancement:

5.2.1

An Equity Equivalent contribution of the entity applying for recognition of Equity Equivalents that involves enhanced Socio-Economic Development.

5.2.1.1

Must comply fully with Code series FS700; and

5.2.1.2

Cannot form part of the score of the entity applying for recognition of Equity Equivalents under Code series FS700.

5.3	Empowerment Finance:

5.3.1

An Equity Equivalent contribution of the entity applying for recognition of Equity Equivalents that involves enhanced Empowerment Finance.

5.3.1.1

Must comply fully with Code series FS600; and

5.3.1.2

Cannot form part of the score of the entity applying for recognition of Equity Equivalents under Code series FS600.

5.4	Investment in Access to Financial Services:

5.4.1

An Equity Equivalent contribution of the entity applying for recognition of Equity Equivalents that involve enhanced Access to Financial Services:

5.4.1.1

Must comply fully with Code series FS800; and

5.4.1.2

Cannot form part of the score of the entity applying for recognition of Equity Equivalents under Code series FS800.