Ownership Definitions

Ownership Definitions

  • Summary View and Detailed View
    • Detailed View enables the user to create the ownership structure in an organogram format.
    •  Summary View provides 3 methods for capturing ownership information:
      • Using an existing ownership scorecard of the measured entity – input the details of your previous verification certificate.
      • Using the summary ownership data of the company – input the details of your companies black shareholding.
      • Using the summary ownership data of the empowerment partner – input the empowerment partners details and percentage shareholding.
  • Date of Empowerment Transaction – This is the earliest date of all the empowerment transactions (transactions were black shareholding was required).
  • Encumbered Equity – This is the debt (acquisition debt) that is still outstanding from the black owned equity to the organisation as at the end date of the current scorecard.
  • Unencumbered Equity – This is the value of the black owned equity as at the end date of the current scorecard MINUS the Encumbered Equity.
  • Black New Entrants – Black participants who hold rights of ownership (economic interest and exercisable voting rights) in an organization and who, before holding these rights, have not held rights of ownership in any other entity which has a value of more than R 50 million.
  • Percentage equity held by empowerment partner – This method should be selected if the organisation is owned by an empowered organisation (an organisation with black shareholding).
  • Net Value – the result of either formula A or B, depending on which of the formulas gives the lesser number of points
  • 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.
  • Group Structure – An ownership arrangement whereby one or more Measured entities that are juristic persons are subsidiaries of another Measured Entity that would qualify as a holding company

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