Equity Ownership
|
Criteria |
Weighting Points |
Compliance Target |
|
Voting Rights |
|
|
|
Exercisable Voting Rights in the Entity in the hands of Black people |
4 |
30% |
|
Exercisable Voting Rights in the Entity in the hands of Black women |
2 |
10% |
|
Economic Interest |
|
|
|
Economic Interest in the Entity to which Black people are entitled |
4 |
30% |
|
Economic Interest in the Entity to which Black women are entitled |
2 |
10% |
|
Economic Interest of any of the following Black natural people in the Measured Entity: · Black designated groups; · Black participants in Employee Share Ownership Programmes; · Black people in Broad-Based Ownership Schemes; · Black participants in Cooperatives |
3 |
3% |
|
New Entrants |
2 |
2% |
|
Realisation Points |
|
|
|
Net Value |
8 |
Refer to Annexure 100 (E) |
Key Principles:
A Measured Entity is required to achieve a minimum of 40% on Net Value points (i.e. 3.2 of 8 points) based on Annexure E in order to avoid being discounted according to the discounting principle contained in paragraph 3.3 in Statement 000 of Amended Code Series 000 as published in Government Gazette No. 36928 dated 11 October 2013.
Net Value Calculation
Step 1: Determine the Deemed Net Value
Deemed Net Value: A = (B-C) / D
A: Deemed Net Value
B: Black shareholding percentage (Economic Interest in the hands of Black people) on measurement date
C: Value of acquisition debt (debt that the black shareholder is still owing on the shares) from Black participants
D: Value of the Entity on measurement date
Step 2: Select the lower result of Formula A and Formula B
Formula A: A = B x (1/ (25% x C)) x 8
A: Result
B: Deemed Net Value
C: Time based graduation factor:
10% for the first year after the current equity interest date.
20% for the second year after the current equity interest date.
40% from the first day of the third year after the current equity interest date to the last day of the fourth year after the current equity interest date.
60% from the first day of the fifth year after the current equity interest date to the last day of the sixth year after the current equity interest date.
80% from the first day of the seventh year after the current equity interest date to the last day of the eighth year after the current equity interest date.
100% from the first day of the ninth year after the current equity interest date to the last day of the tenth year after the current equity interest date.
Formula B: A = (B/C) x 8
A: Result
B: Black Economic Interest percentage
C: Target for Economic Interest in the Entity to which Black people are entitled (i.e. 25%)
After completing the calculation of Formula A and Formula B, the lower of the two results will be the points that will be awarded out of the total 8 points for the Net Value indicator.