Definitions

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

Means a measure of the Measured Entity’s ability to successfully secure formal permanent or long-term contract employment for the Learner or to assist the Learner’s with further education and training.
BizAdvance Consulting comments and references: Refers to the bonus points for Skills Development (2.1.3) where a learner is absorbed as an employee by the measured entity at end of learnership program.
Means the debts of: a) Black participants incurred in financing their purchase of their equity instruments in the Measured Entity; and b) Juristic persons or trusts found in the chain of ownership between the eventual Black Participants and the Measured Entity for the same purpose as those in (a); BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Annexe 100 E
Means an agreement between an apprentice and an employer for a set period of time during which the apprentice works and receives training in the workplace; BizAdvance Consulting comments and references: Refers to the Skills Development element of the scorecard, 2.1.2; 5.1.3; 5.5; Annexe 300 A; 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.
Relates to the Ownership element of the scorecard, Statement 100, Page 14. Means an Entity with which a Seller has concluded a Qualifying Transaction; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard. 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.
Means Broad-Based Black Economic Empowerment; BizAdvance Consulting comments and references: In terms of the Codes of 2007 which were superseded by the Amended Codes of 11th October 2013. 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.
Means a juristic person, having shareholding or similar members interest, in which black participants enjoy a right to Exercisable Voting Rights that is at least 51% of the total such rights measured using the Flow Through Principle; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, 3.4.2. 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.
Fronting means a deliberate circumvention or attempted circumvention of the B-BBEE Act and the Codes. Fronting commonly involves reliance on data or claims of compliance based on misrepresentations of facts, whether made by the party claiming compliance or by any other person. For further information go to B-BEE Fronting. BizAdvance Consulting comments and references For further information refer to the B-BBEE Codes of Good Practice of 11th October 2013 ( page 7)
Means juristic person, having shareholding or similar members interest, that is B-BBEE controlled, in which Black participants enjoy a right to Economic Interest that is at least 51% of the total such rights measured using the Flow Through Principle; BizAdvance Consulting comments and references: Relates to the Ownership element of the Scorecard. 3.4.2; 3.10.3; 3.10.15.3. 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.
Relates to the discounting of an entity’s B-BBEE Recognition level for not achieving sub-minimum percentages of the weighting points allowed, for certain elements as indicated below The priority elements are as follows: Ownership – A sub-minimum of 40% of the weighting points. The percentage of economic interest of Black People in the Measured Entity (40% of the indicator weighting of 8 points) needs to be achieved. Skills development – A sub-minimum of 40% of the total weighting points of 30 points for skills development needs to be achieved. Enterprise and supplier development – A sub-minimum of 40% for each of the three categories stated below: - Preferential procurement: 40% of 15 points - Supplier development: 40% of 10 points - Enterprise development: 40% of 5 points. Large entities need to comply with all the priority elements. QSEs need to comply with ownership as a compulsory element, and either skills development or supplier development. Non-compliance with the 40% in any of the priority elements as indicated above will result in the following for both large entities and QSEs: The actual score achieved (regardless of the non-compliance with the sub-minimum requirements) will be discounted by one level down until the next applicable verification period in which the entity can demonstrate compliance with the 40% sub-minimum requirement, at which point the recorded level will become the applicable rating BizAdvance Consulting comments and references: For further information refer to the B-BBEE Codes of Good Practice of 11th October 2013 page 7
B-BBEE Recognition Level Means the percentage B-BBEE Recognition Levels as determined: a) for Entities that are neither Qualifying Small Enterprises nor Exempted Micro-Enterprises, using statement 000; b) for Qualifying Small Enterprises, using statement 000; and c) For Exempted Micro-Enterprises, the applicable deemed B-BBEE Recognition under statement 000; BizAdvance Consulting comments and references: Refer to the Codes Statement 000 clause 8.2 B-BBEE Status Qualification (2007 Codes for comparison to 2013) Qualification (2013 Codes) B-BBEE recognition level Level One Contributor >100 points on the Scorecard >100 points on the Scorecard 135% Level Two Contributor >85 but <100 points on the Scorecard >95 but <100 points on the Scorecard 125% Level Three Contributor >75 but <85 points on the Scorecard > 90 but <95 points on the Scorecard 110% Level Four Contributor >65 but <75 points on the Scorecard >80 but <90 points on the Scorecard 100% Level Five Contributor >55 but <65 points on the Scorecard >75 but <80 points on the Scorecard 80% Level Six Contributor >45 but <55 points on the Scorecard >70 but <75 points on the Scorecard 60% Level Seven Contributor >40 but <45 points on the Scorecard >55 but <70 points on the Scorecard 50% Level Eight Contributor >30 but <40 points on the Scorecard >40 but <55 points on the Scorecard 10% Non-Compliant Contributor <30 points on the Scorecard <40 points on the Scorecard 0% 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.
Means the B-BBEE status of a Measured Entity as determined under statement 000; BizAdvance Consulting comments and references: Refer to the Codes Statement 000 clause 8.2 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.
Means a body appointed by the Minister for the accreditation of rating agencies or the authorisation of B-BBEE verification professionals; BizAdvance Consulting comments and references: Currently these bodies are SANAS (South African National Accreditation System) and the IRBA (Independent Regulatory Board for Auditors) 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.
Means a factor specified in the Benefit Factor Matrix applicable to fixing the monetary value Enterprise Development and Supplier Development and Socio Economic Development Contributions claimable under statement 400 and 500; BizAdvance Consulting comments and references: The Matrix, Annexe 400 B page 79 for Enterprise Development and Annexe 500 A page 87 for Socio-Economic Development. 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.
Means the Benefit Factor Matrix for Enterprise Development and Supplier Development and Socio Economic Development Contributions annexed to statement 400 and 500; BizAdvance Consulting comments and references: The Matrix, Annexe 400 B page 79 for Enterprise Development and Annexe 500 A page 87 for Socio-Economic Development. 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.
Means: a) Unemployed black people not attending and not required by law to attend an educational institution and not awaiting admission to an educational institution; b) Black people who are youth as defined in the National Youth Commission Act of 1996. c) 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 Equity Act; d) Black people living in rural and under developed areas; e) Black military veterans who qualifies to be called a military veteran in terms of the Military Veterans Act 18 of 2011; Refers to the Ownership element of the scorecard, 2.2.3.1 and 3.6.1.3; BizAdvance Consulting comments and references: Refers to the bonus points for Skills Development (2.1.3) where a learner is absorbed as an employee by the measured entity at end of learnership program. 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.
Means Black participants who hold rights of ownership in a Measured Entity and who, before holding the Equity Instrument in the Measured Entity, have not held equity instruments in other Entities which has a total value of more than R50,000,000, measured using a standard valuation method; BizAdvance Consulting comments and references: Refers to the Ownership element of the scorecard, 2.2.4 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.
Is a generic term which means African, Coloureds and Indians a) who are citizens of the Republic of South Africa by birth or decent; or b) who became citizens of the Republic of South Africa by naturalisation – i. before 27 April 1994; ii. On or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation prior to that date; BizAdvance Consulting comments and references: It is not clear whether Chinese qualify under this definition, but likely that they will continue to be included as before. 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.
Means an ownership scheme which meets the rules set out in Annexe 100B. BizAdvance Consulting comments and references: Annexe 100 B, Statement 000, page 30. 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.
Means any Learning Programme for which the Measured Entity has: a) any form of independent written certificate as referred to in the “Learning Achievements” column of the Learning Programme Matrix; or if it does not have such certification: b) an enrolment certificate issued by the independent person responsible for the issue of the certification referred to in statement 300 confirming the employee has: i. enrolled for, is attending and making satisfactory progress in the Learning Programme; or ii. enrolled for but not attending the Learning; or iii. attending the Training Programme but has failed an evaluation of their learning progress. BizAdvance Consulting comments and references: Refers to the Skills Development element of the scorecard, Statement 300, page 49. 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.
Means the Company Act, No. 71 of 2008 as amended or substituted; BizAdvance Consulting comments and references: Company Act, No. 71 of 2008. 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.
Means a company as referred in the Companies Act, No. 71 of 2008; BizAdvance Consulting comments and references: Company Act, No. 71 of 2008. 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.
Means a person who has acquired through training, qualification and experience, the knowledge and skills necessary for undertaking any task assigned to them under the codes; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, 3.7.3; 3.11.4 and 6.1 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.
Means skills that are: a) value-adding to the activities of the Measured Entity in line with its core business; b) in areas the Measured Entity cannot outsource; or c) within the production/operational part of the Measured Entity’s value-chain; as opposed to the supply side; services or downstream operations; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49 Core skills fall under the heading of Priority Skills. A priority skills programme is a key requirement in terms of qualifying to earn points for this element. Refer 3.1.2 page 51 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.
Means those skills identified as being critical by any SETA; BizAdvance Consulting comments and references: Critical skills fall under the heading of Priority Skills. A priority skills programme is a key requirement in terms of qualifying to earn points for this element. Refer 3.1.2 page 51 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.
EAP Economically Active Population as determined and published by Stats SA. The operative EAP for the purposes of any calculation under the Codes will be the most recently published EAP; BizAdvance Consulting comments and references: Relates to the Management Control element of the scorecard. Stats are available at Stats SA. 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.
Means a claim against an Entity representing a return on ownership of the Entity similar in nature to a divided right, measured using the Flow Through and, where applicable, the Modified Though Principles; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, 2.2 page 16. 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.
Means the Employment Equity Act 1998, as amended; BizAdvance Consulting comments and references: The Employment Equity Act 1998 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.
Means the regulations under the Employment Equity Act; BizAdvance Consulting comments and references: The Employment Equity Act 1998 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.
Means the measurable quantitative or qualitative elements of B-BBEE compliance in the Generic Scorecard and the Codes; BizAdvance Consulting comments and references: The seven elements provided for in the Codes of 2007, have been reduced to five elements in the Codes of 11th October 2013 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.
In terms of the section 18 (1) of the Skills Development Act it means a learner that was in the employment of the employer party to the learnership agreement concerned when the agreement was concluded. The learner’s contract of employment is therefore not affected by the agreement. BizAdvance Consulting comments and references: The Skills Development Act of 2008 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.
Has the meaning defined in the Code of Good Practice on Key Aspects of Disability in the Workplace issued under section 54 of the Employment Equity Act; align with the Employment Equity Act. BizAdvance Consulting comments and references: Code of Good Practice on Key Aspects of Disability 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.
Bears the meaning as defined in the Labour Relations Act 66 0f 1995 amended; BizAdvance Consulting comments and references: Labour Relations Act 66 0f 1995 as amended 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.
Means a worker or employee scheme; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, 3.1.1.6; 3.9; 3.11.2; 3.11.6; 3.11.7; Annexe 100 C; 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.
An Empowering Supplier within a context of B-BBEE is a B-BBEE compliant entity, which is a good citizen South African Entity, comply with all regulatory requirements of the country and should meet at least three if it is a large enterprise or one if it is a QSE of the following criteria: a) At least 25% of cost of sales excluding labour cost and depreciation must be procured from local producers or local suppliers in SA, for service industry labour cost are included but capped to 15%. b) Job Creation – 50% of jobs created are for Black people provided that the number of Black employees since the immediate prior verified B-BBEE Measurement is maintained. c) At least 25% transformation of raw material/beneficiation which include local manufacturing, production and/or assembly, and/or packaging. d) Skills transfer – at least spend 12 days per annum of productivity deployed in assisting black EMEs and QSEs beneficiaries to increase their operation or financial capacity. e) At least 85% of labour costs should be paid to South African employees by service industry entities. BizAdvance Consulting comments and references: 1. It is necessary to be an Empowering Supplier in order for a BEE certificate to be of any value to a measured entity for the purposes of calculating Procurement points. 2. Exempted Micro Enterprises and Start-Ups are automatically recognised as Empowering Suppliers. 3. Suppliers that are least 51% black owned are required to qualify as Empowering Suppliers. 4. Suppliers that are at least 30% black women owned are required to qualify as Empowering Suppliers. 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.
Means monetary or non-monetary contributions carried out for the following beneficiaries, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries: a) Enterprise Development Contributions to Exempted Micro-Enterprises or Qualifying Small Enterprises which are at least 51% Black owned or at least 51% Black woman owned; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development (ESD) element of the scorecard, i.e. Statement 400 page 60. This element is a combination of two elements in the previous Codes of 2007, namely Procurement and Enterprise Development. Large entities no longer qualify as beneficiaries. Emphasis has been placed on the development of black suppliers as beneficiaries. Enterprise Development Contributions are measured as a percentage of Net Profit after Tax. 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.
Means a legal entity or natural or juristic person conducting a business, trade or profession in the Republic of South Africa; BizAdvance Consulting comments and references: Generally companies, closed corporations, partnerships, co-operatives, trusts, certain associations, and sole proprietors. 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.
Means a person who starts and/or operates a business which includes identifying opportunities in the market taking risks with a view of being rewarded with profits; BizAdvance Consulting comments and references: 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.
Means an equity equivalent contribution made by a Multinational under an Equity Equivalent Investment Programme; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, and is an alternative to alienating of equity by a Multinational, for the purposes of achieving Ownership in terms of the Codes. 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.
Means a public programme or scheme of any government department, provincial or local government in the Republic of South Africa or any other programme approved by the Minister as an Equity Equivalent Investment Programme; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, and is an alternative to alienating equity for the purposes of achieving Ownership in terms of the Codes. 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.
Means the instrument by which a Participant holds rights of ownership in an Entity; BizAdvance Consulting comments and references: Examples are shares in a company or members interests in a closed corporation. 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.
Means a percentage ownership performance for all the indicators in the Associated Enterprise’s Ownership Scorecard arising from a Qualifying Transaction included in the Ownership Scorecard of the beneficiary entity; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, and is an alternative to alienating equity for the purposes of achieving Ownership in terms of the Codes. It applies to Multinational entities. 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.
Means those members of the Board who are executive directors as defined in the King Report; BizAdvance Consulting comments and references: Executive members of the board are directors who are involved in the day to day running of a business. 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.
Means an Entity with an annual turnover of R10 (ten) million or less; BizAdvance Consulting comments and references: Refer to Statement 000, clause 4, page 8 and clause 6, page 10. 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.
Means a voting right of a Participant that is not subject to any limit; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, 2.1 page 16, as well as to the Management Control element Statement 200, 2.1 page 42. 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.
Means a globally and uniformly applied practice of a Multinational, restricting alienation of equity in or the sale of businesses in its regional operations. The practice must have existed before the promulgation of the Act; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard. Refer also to Equity Equivalent contribution in these definitions. Relates to the Ownership element of the scorecard, Statement 100, Page 14. Refer to Equity Equivalent Contribution page 98 of the Codes. 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.
Means the monetary value of Qualifying Contributions made by the Measured Entity to a beneficiary in the form of grants, donations, discounts and other similar quantifiable benefits which are not recoverable by the Measured Entity; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400 page 60 and the Socio-Economic Development element Statement 500 page 82. 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.
Means 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; 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.
Means a higher education institution as defined under the Higher Education Act of 1997; BizAdvance Consulting comments and references: The Higher Education Act of 1997 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.
Means the percentage compliance of the Associated Entity for all the indicators of the Associated Enterprises Ownership Scorecard. The calculation of indicator Percentages follows the rules in statement 100 using the actual percentage compliance for each indicator and not the resulting scores; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard. 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.
Means the qualifying contributions that are unique to the industry in which enterprises operate. For the purposes of the Codes an industry may be grouped in major divisions in accordance with the Standard Industrial Classification Coding System used by Statistic South Africa; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400 page 60. 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.
Means an opportunity to integrate career related experience into an undergraduate education by participating in planned, supervised work; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Refer to Annexe 300A page 55. 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.
Means an employee of the Measured Entity who is a member of the occupational category of “Junior Management” as determined using the Employment Equity regulations; BizAdvance Consulting comments and references: Relates to the Management Control element of the scorecard, Statement 200 page 41. In terms of Form EEA2 relating to Section 21 of the Employment Equity Act of 1998, Junior Management is defined as: Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents. Refer to Statement 200 clause 2.5 page 43 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.
Means a work-based route to a qualification. It is a workplace education and training programme comprising both structured practical workplace (on-the-job) experience and structured theoretical training. BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Refer to Annexe 300A - page 56. 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.
Means any learning programme set out in the Learning Programme Matrix; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Refer to Annexe 300A - page 55. 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.
Means the Learning Programme Matrix annexed as Annexe “300A” in statement 300; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Refer to Annexe 300A - page 56. 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.
Means the total Economic Interest received by a Broad-Based Ownership Scheme or Black participants in any year less the amounts distributed or applied to beneficiaries and the amounts reserved for future distribution or application; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard. Refer to Statement 100 Annexe 100B, page 30. 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.
Means any investments made by or through any third party regulated by legislation on behalf of the actual owner of the funds, pursuant to a mandate given by the owner to a third party, which mandate is governed by that legislation. Some examples of domestic mandated investments and the portions of those investments subject to the exclusion principle are contained in Annexe 100A attached to statement 100; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard. Refer to Statement 100, 3.7 page 20 and examples clause 4, Annexe 100A page 29. 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.
Means an Entity as well as an organ of state or public entity subject to measurement under the Codes; BizAdvance Consulting comments and references: It is the Entity which is measured for BEE compliance on the elements of the scorecard for a financial period, generally a year, ending at a specified date. 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.
Means an Entity in which: a) Black people hold at least 51% of the exercisable voting rights as determined under Codes series 100; b) Black people hold at least 51% of the economic interest as determined under Code series 100; and c) Has earned all the points for the Net Value under statement 100; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100 page 14. Refer to clauses 3.4.3.1 page 18. Relates to the Enterprise and Supplier Development scorecard, Statement 400 page 60. Refer to clause 2.1.4 page 62; Bonus points page 62; 3.7 page 65; Also refer to Statement 100, clause 4.3.2 page 9, and 5.3.2 page 9. 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.
Means an Entity in which: a) Black women hold at least 51% of the exercisable voting rights as determined under Codes series 100; b) Black women hold at least 51% of the economic interest as determined under Code series 100; and c) Has earned all the points for the Net Value under statement 100; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400, page 60. Refer clause 3.7 page 65. Relates to the Ownership element of the scorecard, Statement 100, page 14. Refer to clauses 3.4.3.1 page 18. Net Value is the value of equity which accrues to black shareholders over a period of time calculated as the difference between the market value of shares held by blacks at the measurement date, less the amount of loans relating to the acquisition of the shares outstanding at the same date. Refer to the formula in Annexe 100C page 32 of Statement 100 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.
Means an Entity in which: a) Black Women hold more than 30% of the exercisable voting rights as determined under Code series 100; b) Black women hold more than 30% of the economic interest as determined under Code series 100; and c) Has earned all the points for Net Value under statement 100; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400, page 60. Refer clause 2.1.5 page 62. Net Value is the value of equity which accrues to black shareholders over a period of time calculated as the difference between the market value of shares held by blacks at the measurement date, less the amount of loans relating to the acquisition of the shares outstanding at the same date. Refer to the formula in Annexe 100C page 32 of Statement 100 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.
Means an employee of the Measured Entity who is a member of the occupational category of “Middle Management” as determined using the Employment Equity regulations; BizAdvance Consulting comments and references: Refers to the Management Control element of the scorecard, Statement 200 page 41. In terms of Form EEA2 relating to Section 21 of the Employment Equity Act 1998, Middle Management is defined as: Professionally qualified and experienced specialists and mid-management. 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.
Means a Measured Entity with a business in the Republic of South Africa and elsewhere which maintains its international headquarters outside the Republic; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Refer to Equity Equivalent Contribution page 98 of the Codes. 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.
Means the national skills development strategy referred to in Section 5(1) (a) (ii) of the Skills Development Act; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. The Skills Development Act of 1998. 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.
Means the operating profit of a measured entity after tax. It incorporates both the equity / loss figures and abnormal items, but excludes extraordinary items as determined by (GAAP) Generally Accepted Accounting Practices; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400, page 60, and the Socio-Economic Development element Statement 500, page 82. Contributions are recognized as a percentage of annual Net Profit after Tax. 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.
Means the operating profit of a measured entity before tax. It incorporates both the equity / loss figures and abnormal items, but excludes extraordinary items as determined by (GAAP) Generally Accepted Accounting Practices; BizAdvance Consulting comments and references: It is not clear why this definition has been included. In the 2007 Codes Net Profit after Tax was used in order to calculate the VAE status of a measured entity. VAE has been superseded by Empowering Supplier in the BEE Codes 2013. 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.
Means the percentage resulting from the formula in Annexe 100(C) of the statement 100; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Net Value is the value of equity which accrues to black shareholders over a period of time calculated as the difference between the market value of shares held by blacks at the measurement date, less the amount of loans relating to the acquisition of the shares outstanding at the same date. Refer to the formula in Annexe 100C page 32 of Statement 100 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.
Means the later occurring of the date of commencement of statement 100 and the date upon which the earliest of all still operative transactions undertaken by the Measured Entity in order to achieve black rights of ownership, became effective and unconditional; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Net Value is the value of equity which accrues to black shareholders over a period of time calculated as the difference between the market value of shares held by blacks at the measurement date, less the amount of loans relating to the acquisition of the shares outstanding at the same date. Refer to the formula in Annexe 100C page 32 of Statement 100 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.
Means an early stage business which is similar to a start-up. However, an early stage business is typically 3 years old or less. BizAdvance Consulting comments and references: It is not clear why this definition has been included as there is no further reference to it in the Codes. Refer to the definition of Start-up Enterprise. Refer to Statement 000, 2.5 page 6; Clause 6 page 10 Also refer to the Enterprise and Supplier Development element Statement 400, 3.3.1 page 64 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.
Means a non-profit organisation registered under the Non-Profit Organisation Act of 1997. BizAdvance Consulting comments and references: Non-Profit Organisation Act of 1997 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.
Means a natural person holding rights of ownership in a Measured Entity; 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.
Means any expenditure incurred in: a) Procuring the services of or from a labour broker; and b) Procuring the services of any person who receives any remuneration or to whom any remuneration accrues because of any services rendered by such person to or on behalf of a labour broker; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400, page 60 Refer to 5.7 page 68. Outsourced Labour Expenditure is included in the calculation of Total Measured Spend when calculation points under procurement. 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.
Means a report on ‘Professional, Vocational, Technical and Academic Learning’ programmes that meet the critical needs for economic growth and social development, generally combining course work at universities, universities of technology and colleges with structured learning at work. BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. It is a key report in terms of qualifying to earn points for this element. Refer to 3.1.1 page 51. 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.
Means Core, Critical and Scarce Skills as well as any skills specifically identified: a) In a Sector Skills Plan issued by the Department of Labour of the Republic of South Africa. b) National Skills Development Strategy III; c) New Growth Path; and d) National Development Plan Remove. BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. A priority skills programme is a key requirement in terms of qualifying to earn points for this element. Refer 3.1.2 page 51 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.
Means a third party fund through which investments are made on behalf of the actual owner of the funds pursuant to a mandate given by that person to the private equity fund; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Refer to 3.10 page 22. 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.
Means an entity as defined in section 30 of the income Tax Act of 1962; BizAdvance Consulting comments and references: A public benefit organisation (PBO) can be a trust, a company (not for gain), or an association registered with the South African Revenue Service (SARS) in terms of Section 30(1) of the Income Tax Act, No 58 of 1962 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.
Means a collective term describing Enterprise Development and Supplier Development Contributions targeting EME’s and QSE’s which are at least 51% black owned or at least 30% black woman owned , black youth is rural, and underdeveloped areas in statement 400; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400, page 60. Contributions are measured as a percentage of Net Profit after Tax. 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.
Means an Entity that qualifies for measurement under the Qualifying Small Enterprise scorecard with a turnover of R10 million or more but less than R50 million; BizAdvance Consulting comments and references: Relates to the qualifying criteria for a Measured Entity in selecting the correct scorecard. Refer Statement 000 clause 5 page 9; 2.5 page 6; 3.3.2.2 page 7; 3.3.3.1; 3.4 page 8; Ownership Statement 100 clause 2.1.2 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.
Means monetary or non-monetary contributions carried out for the benefit of any projects approved for this purpose by any organ of state or sectors including without limitation: a) Projects focusing on environmental conservation, awareness, education and waste management; and b) Projects targeting infrastructural development or reconstruction in underdeveloped areas; rural communities or geographic areas identified in government’s integrated sustainable rural development or urban renewal programmes; c) New Projects promoting beneficiation; BizAdvance Consulting comments and references: Relates to the Socio-Economic Development element of the scorecard Statement 500, page 82 Socio-Economic Development Contributions are measured as a percentage of Net Profit after Tax. Refer to 2.3 page 83. 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.
Means a sale of a business, valuable business assets or shares that result in the creation of sustainable business opportunities and transfer of specialised skills or productive capacity to Black people; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. It refers to the percentage points earned for the Ownership element arising from a Qualifying Transaction. 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.
Means an Entity controlled by a Measured Entity whether directly or indirectly controlled by the natural persons who have direct or indirect control over that Measured Entity or the immediate family of those natural persons; 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.
Is a collective term for the right to Economic Interest and the right to Exercisable Voting Rights; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Points are earned on the Ownership scorecard for the percentage Economic Interest (typically dividends paid), and the percentage Voting Rights, that accrue to black shareholders. Refer to clauses 2.1 and 2.2 page 16. 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.
Are those skills identified as being scarce by any SETA; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Scarce skills fall under the heading of Priority Skills. A priority skills programme is a key requirement in terms of qualifying to earn points for this element. Refer 3.1.2 page 51 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.
Means an association not for gain incorporated under section 21 of the Companies Act; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Refer clause 3.11 page 25 for the measurement of Ownership relating to Section 21 Companies 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.
Means a code in series 003 which is applicable to a particular sector; BizAdvance Consulting comments and references: The Codes of Good Practice provide government and industry with a standard framework for the implementation and measurement of broad-based BEE. This framework is the guide to formation of different industry Sector Charters and scorecards, in order to express an industry's commitment to BEE. The BEE Act provides for charters to be gazetted in terms of its section 9, or section 12. Where a charter is gazetted in terms of section 9, it means that the document is aligned to, and has the same status as the Codes of Good Practice. Entities that qualify for inclusion in particular sectors, are required to be scored under their applicable sector Charters. The charter scorecard thus becomes the measurement criterion used by organs of state and public entities in terms of preferential procurement of goods and services from BEE compliant suppliers. Link to Sector Codes that have been gazetted. 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.
Means the Entity or the person concluding a Qualifying Transaction with the Associated Enterprise; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Refer to the definitions of Qualifying Transaction and Associated Enterprise. 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.
Means an employee of the Measured Entity who is a member of the occupational category of “Senior Management” as determined using the Employment Equity regulations; BizAdvance Consulting comments and references: Relates to the Management Control element of the scorecard, Statement 200 page 41. In terms of Form EEA2 relating to Section 21 of the Employment Equity Act of 1998, Senior Management is not specifically defined. For clarification refer to the various categories in Statement 200 clauses 2.1; 2.2; 2.3; and 2.4 pages 43 and 44. Also refer to 3.3 on page 44. 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.
Comprises the money that a Measured Entity spends on skills development. It excludes the skills development levy payable by the Measured Entity under the Skills Development Levies Act; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Skills development expenditure is measured as a percentage of the Leviable Amount in order to determine points for this element. Refer to 2.1.1 page 50. 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.
Means monetary or non-monetary contribution implemented for communities, natural persons or groups of natural persons where at least 75% of the beneficiaries are Black people. The objective of Socio-Economic Development Contributions is the promotion of sustainable access for the beneficiaries to the economy. Socio-Economic Development Contributions commonly take the following forms: a) Development programmes for woman, youth, people with disabilities, people living in rural areas. b) Support of healthcare and HIV/AIDS programmes; c) Support for educational programmes, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships; d) Community training, skills development for unemployed people and adult basic education and training; or e) Support of arts, cultural or sporting development programmes; BizAdvance Consulting comments and references: Relates to the Socio-Economic Development element of the scorecard Statement 500, page 82 Socio-Economic Development Contributions are measured as a percentage of Net Profit after Tax. Refer to 2.3 page 83. 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.
Means monetary or non-monetary contributions carried out for the benefit of any projects approved for this purpose by any organ of state or sectors including without limitation: a) Projects focusing on environmental conservation, awareness, education and waste management; and b) Projects targeting infrastructural development or reconstruction in underdeveloped areas; rural communities or geographic areas identified in government’s integrated sustainable rural development or urban renewal programmes; c) New Projects promoting beneficiation; BizAdvance Consulting comments and references: Relates to the Socio-Economic Development element of the scorecard Statement 500, page 82 Socio-Economic Development Contributions are measured as a percentage of Net Profit after Tax. Refer to 2.3 page 83. 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.
Means a standard valuation method for an asset, an Economic Interest, or any other instrument or right relevant to measurement under statement 100, undertaken using normal valuation methods that represent standard market practice; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, Page 14. Refer to Statement 000 clause 2.7 page 6. It also relates to valuations of contributions to Enterprise Development and Supplier Development in Statement 400 clause 4.7, page 66, and Socio-Economic Development in Statement 500 clause 3.1.1, page 84. 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.
Means a recently formed or incorporated Entity that has been in operation for less than 1 year. A start-up enterprise does not include any newly constituted enterprise which merely is a continuation of a pre-existing enterprise; BizAdvance Consulting comments and references: Relates to the qualifying criteria for a Measured Entity in selecting the correct scorecard. In its first year of operation following formation or incorporation it is measured as an EME regardless of its expected total revenue for the year. Refer to Statement 000, clauses 2.5; and 6; 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.
Has the meaning defined in section 1 (3) of the Companies Act; BizAdvance Consulting comments and references: The Companies act 71 of 2008 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.
Is a Level One to Level Three Contributor to B-BBEE; BizAdvance Consulting comments and references: Although included in the definitions, the term is not mentioned elseware in the Codes. Certain users of BEE scorecard data may however have policies that prefer to procure from Superior Contributors. 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.
Means any supplier or service provider to a Measured Entity if any portion of the supply or service provision falls within the definition of Total Measured Procurement Spend; BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400, page 60. Total Measured Spend is the total of Cost of sales, Operational expenditure, and Capital expenditure. Refer to Statement 400 clause 5, page 67. 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.
Means monetary or non-monetary contributions carried out for the benefit of value-adding suppliers to the Measured Entity, with the objective of contributing to the development, sustainability and financial and operational independence of those beneficiaries: a) Supplier Development Contributions to suppliers that are Exempted Micro-Enterprises or Qualifying Small Enterprises which are at least 51% black owned or at least 51% black woman owned; Make note re 51% women BizAdvance Consulting comments and references: Relates to the Enterprise and Supplier Development element Statement 400, page 60. Entities can score 10 points for contributing 2% of net Profit after Tax to supplier development. Refer to clauses 2.2.1 page 62, 3.5.1 page 64, 4.7 page 66, 4.10 page 66, 9.1 page 71 and 10.1 page 74. 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.
Means the Broad-Based Black Economic Empowerment Act 53 of 2003; BizAdvance Consulting comments and references: The Broad-Based Black Economic Empowerment Act 53 of 2003 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.
Means the B-BBEE Codes of Good Practice of 11thOctober 2013 including all the statements as issued under section 9 of the Act; BizAdvance Consulting comments and references: The 2013 Codes supersede the Codes of 2007, taking into consideration the twelve months Transitional Period provided for in clause 10 page 13 of Statement 000. 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.
Means the balanced B-BBEE scorecard as contained in statement 000; BizAdvance Consulting comments and references: It is interesting that the Codes of 2013 refer to the Generic Scorecard in the heading of Statement 100 page 4 as if it is a generic term for Generic (large entities) and Qualifying Small Enterprises, both using the same scorecard. Elseware in Statement 000 reference is made to separate scorecards for Generic and Qualifying Small Enterprises i.e. clause 1.5 page 5; 1.7 page 5; 3.2.2 page 6; 6.4 page 10 and 8.2.1 page 11. The definitions also refer separately to a QSE scorecard. In the absence of a separate scorecard it is assumed that Qualifying Small Enterprises (QSE’s) use the Generic scorecard. On this basis the only difference between calculating the Contribution Level of a Large enterprise versus a QSE is in Statement 000 clause 3.3.2.2 page 7 which relates to the Priority Elements compliance. 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
Means the Public Finance Management Act 1 of 1999 as amended; BizAdvance Consulting comments and references: The Public Finance Management Act 1 of 1999 as amended 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.
Means the QSE scorecard referred to in statement 000; BizAdvance Consulting comments and references: It is interesting that the Codes of 2013 refer to the Generic Scorecard in the heading of Statement 100 page 4 as if it is a generic term for Generic (large entities) and Qualifying Small Enterprises, both using the same scorecard. Elseware in Statement 000 reference is made to separate scorecards for Generic and Qualifying Small Enterprises i.e. clause 1.5 page 5; 1.7 page 5; 3.2.2 page 6; 6.4 page 10 and 8.2.1 page 11. The definitions also refer separately to a QSE scorecard. In the absence of a separate scorecard it is assumed that Qualifying Small Enterprises (QSE’s) use the Generic scorecard. On this basis the only difference between calculating the Contribution Level of a Large enterprise versus a QSE is in Statement 000 clause 3.3.2.2 page 7 which relates to the Priority Elements compliance. 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.
Means the Skills Development Act of 1998; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Refer to Annexe 300A - page 56. The Skills Development Act of 1998 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.
Means the document entitled “South Africa’s Economic Transformation - A strategy for Broad-Based Black Economic Empowerment” published by the department of trade and industry in March 2003 as amended or substituted under section 11 of the Act; BizAdvance Consulting comments and references: South Africa’s Economic Transformation - A strategy for Broad-Based Black Economic Empowerment 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.
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.
Means the total amount of remuneration paid by any Entity to its employees determined using section 3(4) of the Skills Development Levies Act of 1999 and the forth Schedule of the Income Tax Act of 1962; BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49. Refer to Annexe 300A - page 56 Other that in the definition section, no further reference is made to the term Total Labour Cost. Total labour cost is referred to as the Leviable Amount, the amount against which Skills Development contributions are measured. 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.
Means the total income of the Entity from its operations as determined under South African Generally Accepted Accounting Practice; BizAdvance Consulting comments and references: Total Revenue in the Codes refers to the determination of the different measurement levels for EME, QSE and Generic entities as follows: EME’s and Start-ups - Annual turnover of R10 million or less. QSE’S - Annual turnover of R10 million or more but less than R50 million. Large Entities (Generic) - Annual turnover of R50 million or more. 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.
Means the sectoral transformation charters referred to in section 12 of the Act; BizAdvance Consulting comments and references: The Codes of Good Practice provide government and industry with a standard framework for the implementation and measurement of broad-based BEE. This framework is the guide to formation of different industry Sector Charters and scorecards, in order to express an industry's commitment to BEE. The BEE Act provides for charters to be gazetted in terms of its section 9, or section 12. Where a charter is gazetted in terms of section 9, it means that the document is aligned to, and has the same status as the Codes of Good Practice. Entities that qualify for inclusion in particular sectors, are required to be scored under their applicable sector Charters. The charter scorecard thus becomes the measurement criterion used by organs of state and public entities in terms of preferential procurement of goods and services from BEE compliant suppliers. Link to Sector Codes that have been gazetted 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.
Means a learner that was not in the employment of the employer party to the learnership agreement concerned when the agreement was concluded. The employer and learner must therefore enter into a contract of employment. Refer to the Skills Development Act. BizAdvance Consulting comments and references: Refers to the Skills Development element of the scorecard, Statement 300, page 49 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.
Means a joint venture between two or more Measured Entities effected by agreement without incorporation; BizAdvance Consulting comments and references: Other than in the definition section of the Codes, no other reference is made to Unincorporated Joint Ventures. 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.
Means a voting right attaching to an Equity Instrument owned by or held for a participant measured using the Flow through Principle or the Control Principle; BizAdvance Consulting comments and references: Relates to the Ownership element of the scorecard, Statement 100, 2.1 page 16, as well as to the Management Control element Statement 200, 2.1 page 42. 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.
Means the weighting applied to various Elements in the Generic Scorecard and QSE Scorecard; BizAdvance Consulting comments and references: It is the maximum points that can be scored for each of the elements and sub-elements. In the 2013 Codes the scorecard elements total 105 points. This includes 15 points for Management Control. However, the total of the sub-elements of Management Control is 19, which in all likelyhood should be 20, and hence means the overall total of the scorecard should have read 110 points. Another of many errors in the Codes. 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.
Means the plan of a Measured Entity approved by the relevant SETA. BizAdvance Consulting comments and references: Relates to the Skills Development element of the scorecard, Statement 300, page 49 A Workplace Skills Plan is a key requirement in terms of qualifying to earn points for this element. Refer 3.1.1 page 51. 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.

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.