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

Industry Charters

Financial Sector Charter on Black Economic Empowerment

12. Shareholder activism


12.1 The financial sector recognises that shareholder activism is a critical component of continued confidence and long-term growth of the sector.


12.2 Financial institutions therefore undertake within the parameters of good corporate governance to:
12.2.1 promote increasing levels of influence of direct black owners at board level;
12.2.2 encourage training and awareness programmes for all shareholders regarding the impact of indirect shareholding;
12.2.3 encourage shareholder awareness through triple bottom line reporting, reporting on performance in terms of the charter and information about the institution and the sector; and
12.2.4 facilitate, where possible, black companies or individuals voting on behalf of indirect owners.


12.3 Fund managers and asset consultants commit, as part of their obligations in the charter, to comply with the provisions of 12.2 and to improve their knowledge and that of union trustees regarding BEE transactions and targeted investment.


12.4 Pension fund trustees are encouraged to play an increasingly active role in promoting the objectives of the charter on their respective boards and in the entities in which they have taken significant investments.