Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)
Codes of Good Practice on Black Economic Empowerment
Code Series 100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment
Statement 100 : The General Principles for Measuring Ownership
6. Section 21 Companies and Companies Limited by Guarantee
A Measured Entity may elect to include or exclude Section 21 companies or companies limited by guarantee for the purposes of measuring ownership in terms of this statement.
|6.1)||A Section 21 company or company limited by guarantee that houses a Broad-Based Ownership Scheme or an Employee Ownership Scheme is subject to the provisions governing those types of schemes and not to this paragraph.|
|6.2)||When a Measured Entity elects to exclude such companies, it can do so by excluding up to 40% of the level of their ownership completely from the determination of its compliance with the ownership target.|
|6.3)||A Measured Entity electing not to exclude section 21 companies or companies limited by guarantee when it is entitled to do so, may either treat all of that ownership as non-black or obtain a competent person's report estimating the extent of black rights of ownership measurable in the Measured Entity and originating from those section 21 companies or companies limited by guarantee.|
|6.4)||Black Participants in a Section 21 Company holding rights of ownership in a Measured Entity may contribute:|
|6.4.1)||a maximum of 40% of the total points on the ownership scorecard of the Measured Entity if they meet the qualification criteria for Broad-Based Ownership Schemes set out in Annexe 100(B).|
|6.4.2)||100% of the total points on the ownership scorecard of the Measured Entity if they meet the additional qualification criteria set out for Broad-Based Ownership Schemes in Annexe 100(B).|
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