|
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 |
15% |
|
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 |
15% |
|
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 |
4 |
10% |
|
Realisation Points |
|
|
|
Net Value |
8 |
Refer to Annexe TSC100 (E) |
Key Principles:
Ownership is a priority element and therefore a 40% sub minimum of the Net Value must be achieved in order to avoid the discounting principle. To avoid doubt, that is 3.2 points for Net Value.
Net Value Calculation deciphered in Annexe TSC100 (E):
There are 2 steps to this 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/ (30% 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. 30%)
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.
Definitions:
Black Designated Groups – This group includes the following groups of individuals:
- Unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution.
- Black people who are youth as defined in the National Youth Commission Act of 1996.
- Black people who are persons with disabilities as defined in the Code of Good Practice on employment of people with disabilities issued under the employment act.
- Black people living in rural and under-developed areas.
- Black military veterans who qualifies to be called a military veteran in terms of the Military Veterans Act 18 of 2011.
Black New Entrants – Black participants who hold rights of ownership in a measured entity and who, before holding Equity Instruments in other entities which has a total value of more than R50 Million, measured using a Standard Valuation Method.
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