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

Codes of Good Practice on Black Economic Empowerment

Integrated Transport Sector Codes

Taxi Industry Sub-Sector Code for BBBEE

7. Taxi Associations

7.1 Ownership

 

7.1.1 This sub-sector acknowledge the strides made by the taxi industry in entering into collaborative partnerships with other sectors of the economy e.g. the liquids fuels, mining, insurance, spares and financial sectors. The industry should continuously investigate and seek opportunities to diversify into other related industries.

 

 

7.1.2 The industry commits to pursuing alternative ownership models (such as collective forms of ownership) as the current individualistic approach to taxi operations prevent economies of scale and pooling of resources. These models may include collective and employee ownership vehicles, co-operatives and other corporate structures that separate ownership and management control. At some point, taxi owners should graduate to bus owners

 

7.1.3 Section 21 Companies

 

7.1.3.1 Section 21 companies will be excluded from evaluation on the ownership element of the scorecard.

 

7.1.3.2 Associations registered, as Section 21 companies will be evaluated using the adjusted scorecard developed for this sub-sector using principles contained in statement 004 of the Generic Codes of Good Practice. The scorecard is contained in Annexure A of this document.

 

7.1.3.3 Contributions to the other elements of the scorecard will be measured using the same measurement principles and indicators as for  other enterprises within the sub-sector, but the weightings will be adjusted as per the scorecard.

 

7.1.4 Public Benefit Organisations

 

7.1.4.1 An association registered as a Public Benefit Organisation (PBO) will receive the same treatment as Section 21 companies, regarding ownership requirements.

 

7.1.5 Private and Public Limited Companies

 

7.1.5.1 Industry Associations commits to:

 

7.1.5.1.1 The ownership of Associations registered, as private companies, limited companies, close corporations and partnerships will be evaluated using the following criteria:

 

7.1.5.1.1.1        Voting Rights

 

7.1.5.1.1.1.1 Black Women: 25%+1 of voting rights in Measured Entities in the hands of black women.

 

7.1.5.1.1.1.2 Black Youth: 5% of voting rights in Measured Entities in the hands of black youth

 

7.1.5.1.1.1.3 Black Designated Groups (including black people living with disabilities): 5% of voting rights in Measured Entities in the hands of black designated groups which excludes black youth.

 

7.1.5.1.1.2 Economic Interest

 

7.1.5.1.1.2.1 Black Women: 25% of economic interest in Measured Entities in the hands of black women.

 

7.1.5.1.1.2.2 Black Youth: 5% of economic interest in Measured Entities in the hands of black youth.

 

7.1.5.1.1.2.3 Black Designated Groups excluding  Black Youth: 3% of economic interest in Measured Entities in the hands of black natural people excluding black youth

 

7.1.5.1.1.3 Measurement Principles and the Application of the Charter

 

7.1.5.1.1.3.1 Measurement principles associated with the ownership element is contained in Statement 100 of Code 100 of the Generic Code of Good Practice.

 

7.1.5.1.1.3.2 The formulae required in the determination of the ownership score are contained in Annexure 100 (c) of Statement 100 of Code 100 of the Generic Code of Good Practice.

 

7.1.5.1.1.3.3 The recognition of the sale of assets under the ownership element has the same meaning as that contained in Statement 102 of Code 100 of the Generic Code of Good Practice. The targets as contained in the ownership element of this Sub-Sector Code will apply.

 

7.1.5.1.1.3.4 The recognition of the equity equivalent programmes for multinational has the same meaning and interpretation as that contained in Statement 103 of Code 100 of the Generic Code of Good Practice.

 

7.1.5.1.1.3.5 The formulae required in the determination of the ownership score based on equity equivalent contributions are contained in Annexure 103 (A) of Statement 103 of Code 100 of the Generic Code of Good Practice.

 

7.1.5.1.1.3.6 Measurement principles relating to the ownership element for QSEs are contained in Statement 801 of Code 800 of the Generic Codes of Good Practice.