Definition of Third Party Rights

Definition in terms of the B-BBEE Codes of Good Practice of 11th October 2013 (BEE Codes 2013)

Third Party Rights

Means third party legal or commercial rights that restrict withhold or defer any benefit associated with ownership of any Equity Instrument. Third party rights include only those rights:

a)      Created against a black participant to secure, for a lender, repayment of a loan advanced to that Participant for financing their purchase of their equity instrument on the Measured Entity;

b)      Held against a juristic person or trust that is in the chain of ownership between the Measured Entity and the eventual Black participant, serving the same purpose mentioned in (a) above;

BizAdvance Consulting comments and references:

Relates to the Ownership element of the scorecard, Statement 100, Page 14.

Comments are based on the opinion of BizAdvance Consulting and may be subject to different interpretations and opinions by other parties. The comments and references are intended as a guide to readers but it is important that they are read in conjunction with the Codes and other related legislation. Please refer to our Disclaimer Policy.