BEE Lexicon

|  BEE Lexicon

Knowledge from A to BEE

Lexicon

Knowledge is earned from years of working experience across sectors and choosing a trusted partner that has their finger on the ever changing pulse that is the BEE Commission. Here in our QTC Lexicon, we aim to help you and your business better understand the terminology used to help you better navigate this complex corporate terrain.

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A

Absorption

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 progress with further education and training.
Acquisition debt

Is the debt associated with the purchase of an asset.  In the context of empowerment, it means the funding extended to a Black participant to purchase shares in a Measured Entity.

Advisory

Having the power to make recommendations but not to take action on them.

Anti Zero-Sum
Zero-sum describes a situation where for one person to gain, another would incur a matching loss.  Quiver Tree Capital’s approach is Anti zero-sum. The opposite of zero-sum is Win-Win.
Apprenticeship

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.

Associated Entity
An Entity with which a Seller has concluded a Qualifying Transaction.

B

B-BBEE

BEE, BBBEE or B-BEE means Broad Based Black Economic Empowerment as legislated in the BBBEE Act.

Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003); 

B-BBEE Certification Date:

The date upon which a Measured Entity obtains a BEE certification by a SANAS accredited BEE Verification Agency.

B-BBEE Controlled Company
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.
B-BBEE Owned Company
The same as above. 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.

B-BBEE Recognition Level

The percentage of B-BBEE Recognition Levels as set forth in the Codes.

B-BBEE Status

The B-BBEE status of a Measured Entity as determined under statement 000. B-BBEE Verification Professional a person who preforms any work in connection with rating the status of enterprises in terms of Broad-Based Black Economic Empowerment compliance, on the authority of, or for a rating agency accredited by, a B-BBEE Verification Professional Regulator.
B-BBEE Verification Professional Regulator
A body appointed by the Minister for the accreditation of rating agencies or the authorisation of B-BBEE verification professionals. Now just SANAS.
Benefit Factor
A factor specified in the Benefit Factor Matrix applicable to fixing the monetary value of Enterprise Development and Supplier Development and Socio Economic Development Contributions claimable under statement 400 & 500.
Benefit Factor Matrix
The Benefit Factor Matrix for Enterprise Development and Supplier Development and Socio-Economic Development Contributions annexed to statement 400 & 500.

Black Designated group

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, 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 Equity Act; Black people living in rural and underdeveloped areas; Black military veterans who qualify to be called a military veteran in terms of the Military Veterans Act 18 of 2011.
Black Empowerment

The empowerment of black people.

Black New Entrants
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 have a total value of more than R50,000,000 measured using a standard valuation method.
Black People

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.

Broad-Based Ownership Scheme
An ownership scheme which meets the rules set out in Annexe 100B.

C

Call Option

The right to buy a pre-agreed asset at a pre-determined price at some stage in the future.

Certified Date or certificate

The date on which the certificate was issued and therefore the start of the 12-month validity period of that certificate.
Certified Learning Programme

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 is making satisfactory progress in the Learning Programme; or
(ii) enrolled for but not attended the Learning; or
(iii) attended the Training Programme but has failed an evaluation of their learning progress

Codes

The Revised Codes of Good Practice.

Companies Act

The Companies Act, No. 71 of 2008 as amended or substituted.

Company Limited by guarantee

A company as referred in the Companies Act, No. 71 of 2008.

Competent Person

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;

Consultant

A person who provides professional advice.
Core Skills

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.

Critical Skills
Those skills identified as being critical by any SETA.
Current Equity Interest Date

The date of commencement of Statement 100 and the date upon which the transaction undertaken by the measured entity to achieve Black Rights of Ownership became effective and unconditional.

D

Debt

An amount owed to a person or organisation for funds borrowed. Debt can be represented by a loan note, bond, mortgage, preference share or other form stating repayment terms and, if applicable, interest requirements. These different forms all imply intent to pay back an amount owed by a specific date, which is set forth in the repayment terms.
DESIGNATED GROUP SUPPLIER

A supplier to the Measured Entity that is at least owned by one or more of the following categories of ownership within its structure:

(a) Unemployed ‘Black’ people not attending and not required by law to 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 the employment of people with disabilities issued under the Employment Equity Act.

(d) ‘Black’ people living in rural and underdeveloped areas.

(e) ‘Black’ Military Veterans who qualify to be called a Military Veteran in terms of the Military Veterans Act 18 of 2011.

DTI
This stands for the Department of Trade & Industry.

E

EAP
Economically Active Population as determined and published by Stats SA.
Earnings Multiple

A method of valuing a company based on a multiple of its earnings.

EBITDA
Earning Before Interest, Tax, Depreciation and Amortisation.
Economic Interest
A claim against an Entity representing a return on ownership of the Entity similar in nature to a dividend right, measured using the Flow Through and, where applicable, the Modified Through Principles.
ED
Enterprise Development, which focuses on the extent that small Black business receive support and are helped to develop their operations.
EE Act
The Employment Equity Act of 1998, as amended.
EE Regulations
The regulations under the Employment Equity Act.
Elements

The measurable quantitative or qualitative elements of B-BBEE compliance in the Generic Scorecard and the Codes.

EME

An Exempt Micro Enterprise, which is a business with an annual turnover under R10m.

Employed Learner
In terms of 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.
Employee
Bears the meaning as defined in the Labour Relations Act 66 of 1995 as amended.
Employee Ownership Scheme

A worker of Employee Scheme.

Employee with a Disability

The meaning defined in the Code of Good Practice on Key Aspects of Disability in the Workplace issued under section 54 of the EE Act.

Empowering Supplier

An Empowering Supplier within a context of B-BBEE is a B-BBEE compliant entity, which is a good citizen South African entity, complies 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 includes 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.

Enterprise Development Contributions

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 women owned.

Entity

A legal entity or a natural or a juristic person conducting a business, trade or profession in the Republic of South Africa.

Entrepreneur

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.

Equity Equivalent
An alternative method to secure ownership points for foreign companies.
Equity Equivalent Contribution
An equity equivalent contribution made by a Multinational under an Equity Equivalent Investment Programme.
Equity Equivalent Investment Programme
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.
Equity Instrument
The instrument by which a Participant holds rights of ownership in an Entity.
Equivalency Percentage
A Percentage ownership performance for all the indicators in the Associated Enterprises Ownership Scorecard arising from a Qualifying Transaction included in the Ownership Scorecard of the Beneficiary Entity.

Executive Member of board

Members of the Board who are executive directors as defined in the King Report.
EXEMPTED MICRO ENTERPRISES
An entity with an annual turnover of R10 million or less.
EXERCISABLE VOTING RIGHT
A voting right of a Participant that is not subject to any limit.

F

Fronting
Act as a front or cover for illegal or secret activity.
Fronting OR FRONTING PRACTICE

A transaction, arrangement or other act or conduct that directly or indirectly undermines or frustrates the achievement of the objectives of BBBEE Act or the implementation of any of the provisions of BBBEE Act, including but not limited to practices in connection with a B-BBEE imitative:
In terms of which black persons who are appointed to an enterprise are discouraged or inhibited from substantially participating in the core activities of that enterprise;
In terms of which the economic benefits received as a result of the broad based black economic empowerment status of an enterprise do not flow to black people in the ratio specified in the relevant legal documentation;
Involving the conclusion of a legal relationship with a black person for the purpose of that enterprise achieving a certain level of broad based black economic empowerment compliance without granting that black person the economic benefits that would reasonably be expected to be associated with the status or position held by that black person; or
involving the conclusion of an agreement with another enterprise in order to achieve or enhance broad-based black economic empowerment status in circumstances in which:
there are significant limitations, whether implicit or explicit, on the identity of suppliers, service providers, clients or customers;
the maintenance of business operations is reasonably considered to be improbable, having regard to the resources available;
the terms and conditions were not negotiated at arm’s length and on a fair and reasonable basis.

G

GENERIC SCORECARD OR B-BBEE GENERIC SCORECARD
The scorecard used by the DTI to measure the BEE status of a Generic Enterprise.
Global Practice
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.
Good Practice

A good practice is not only a practice that is good, but a practice that has been proven to work well and produce good results.

Grant Contribution

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.
Group Structure
An ownership arrangement whereby one or more subsidiaries of another Measured Entity that would qualify as a holding company.

H

Higher Education Institution
A higher education institution as defined under the Higher Education Act of 1997.

I

Implementation

the process of putting a decision or plan into effect

Indicator Percentage
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.
Industry Specific Initiatives
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.

Internship

An opportunity to integrate career related experience into an undergraduate education by participating in planned, supervised work.

J

Junior Management
An employee of the Measured Entity who is a member of the occupational category of “Junior Management” as determined using the Employment Equity regulations.

K

L

Learnership
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.
Learning Programmes
any learning programme set out in the Learning Programme Matrix.
Learning Programme Matrix
means the Learning Programme Matrix annexed as Annexe “300A” in statement 300.
Leviable Amount
The meaning as defined in the Skills Development Levies Act of 1999 as determined using the Fourth Schedule to the Income Tax Act.
Long-term contract of Employment
A legal agreement between an individual and an Entity that this individual would work for until his/her mandatory date of retirement.

M

Management Control
The extent to which black people are represented in a company’s management structure.
Management Fees
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.
Mandated Investments
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.
Measured Entity
An Entity as well as an organ of state or public entity subject to measurement under the Codes.
Measurement Date

The last day of the Measurement Period or such a date agreed upon with the Measured Entity that is as close as practically possible to the verification date. The term “Date of Measurement” has the corresponding meaning; the Ownership and Management Control elements must be measured as at the Measurement Date. For the avoidance of doubt, these two elements are to be measured on the same date.

Measurement period 

The financial period of the Measured Entity, subject to the following: The period of 12 consecutive calendar months; Where the Measured Entity amended its financial reporting period from one year to another the financial period may, for that particular year in question, must be 12 consecutive months. In such exceptional cases the Measured Entity may at its discretion elect to be measured for the amended financial period (however many months it may include) or the 12 months ending on the last day of the amended financial period. For the purposes of determining its classification as an EME, QSE or Generic Enterprise the Measured Entity must however, irrespective of the election it exercises above, do so with reference to the 12 months ending on the last day of the amended financial period. In the case where audited financial statements are not available for the Measurement Period, management accounts for the same period will be used.
Middle Management
An employee of the Measured Entity who is a member of the occupational category of “Middle Management” as determined using the Employment Equity regulations.
Modified flow through principle

Is in place to ensure that the objectives of BEE will not be circumvented through complex funding structures. The flow-through principles trace ownership measurement through the chain of ownership to the black natural person(s). The modified flow-through principle allows for the participation of non-BEE funders at one tier of ownership. A measured enterprise can elect to apply the modified flow-through principle at any tier in a chain of ownership, but limited to one tier only.

Multinational Business
A Measured Entity with a business in the Republic of South Africa and elsewhere which maintains its international headquarters outside the Republic.

N

National Skills Development Strategy
The national skills development strategy referred to in section 5(1)(a)(ii) of the Skills Development Act.

Net Value 

The percentage resulting from the formula in Annexe 100(C) of statement 100.
Net Value Date
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.
Net Value Transfer

The transfer of unencumbered equity to empowerment partners.

New Enterprise

An early stage business which is similar to a start- up. However, an early stage business is typically 3 years old or less.

NPAT
Net Profit After Tax. 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.
NPBT

Net Profit Before Tax.

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.

NPO
A non-profit organisation registered under the Non-Profit Organisation Act of 1997.

O

old codes

The Codes of Good Practice repealed and replaced by the Revised Codes of Good Practice that came into effect on 1 May 2015.

 

Outsourced Labour Expenditure

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.

Ownership 

The act, state, or right of possessing something.

P

Participant
A natural person holding rights of ownership in a Measured Entity.
Percentage – 51% Black Owned

An Entity in which:
(a) Black people hold at least 51% of the exercisable voting rights as determined under Code 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 Net Value under statement 100.

Percentage – 51% Black Woman Owned

An Entity in which:
(a) Black women hold at least 51% of the exercisable voting rights as determined under Code 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 Net Value under statement 100.

Percentage – 30% Black Woman Owned

An Entity in which:
(a) Black women hold at least 30% of the exercisable voting rights as determined under Code series 100;
(b) black women hold at least 30% of the economic interest as determined under Code series 100; and
(c) has earned all the points for Net Value under statement 100.

PIVOTAL report
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.
Preferential Procurement
The aim of the Preferential Procurement scorecard is to encourage the usage of black owned professional services and entrepreneurs as suppliers while inherently encouraging measured entities to empower themselves on the broad-based principles of BEE.
Priority Element

An empowerment pillar of special importance where 40% of the target has to be achieved to avoid being discounted an empowerment level.

Priority Skills

An empowerment pillar of special importance where 40% of the target has to be achieved to avoid being discounted an empowerment level.

Private Equity Fund
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.
Public Benefit Organisation
An entity as defined in section 30 of the income Tax Act of 1962.

Q

QSE’s
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.
Qualifying Enterprise & Supplier Development Contributions
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 women owned, black youth in rural, and underdeveloped areas in statement 400.
Qualifying Socio-Economic Contributions
Is a collective term for both Socio-Economic Project and Socio-Economic Development Contributions.
Qualifying Transaction
A sale of a business, valuable business assets or shares that results in the creation of sustainable business opportunities and transfer of specialised skills or productive capacity to Black people.

R

Regulation

A rule or directive made and maintained by an authority.

Related Enterprise
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.
Rights of Ownership
Is a collective term for the right to Economic Interest and the right to Exercisable Voting Rights.

S

Scarce Skills
Those skills identified as being scarce by any SETA.
Section 21 Company
An association not for gain incorporated under section 21 of the Companies Act.
Sector Code
A code in series 003 which is applicable to a particular sector.
SED

Socio-Economic Development and measures the extent to which companies undertake social investment initiatives.

SED Contributions

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 women, youth, people with disabilities, people living in rural areas;
(b)   support of healthcare and HIV/AIDS programmes;
(c)   support for education 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

SED Project Contributions

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 the government’s integrated sustainable rural development or urban renewal programmes;
(c) New projects promoting beneficiation.

Seller
The Entity or the person concluding a Qualifying Transaction with the Associated Enterprise.
Senior Management
An employee of the Measured Entity who is a member of the occupational category of “Senior Management” as determined using the Employment Equity regulations.
SD

Supplier Development.

SD Contributions

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 women owned.

Skills Development

One of the pillars of the scorecard and it is a priority element it measures the extent to which companies invest in their Black workers augmenting their skills and competencies.

Skills Development Expenditure
Comprises of 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.
SOCIO-ECONOMIC DEVELOPMENT CONTRIBUTIONS

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:
Development programmes for women, youth, people with disabilities, people living in rural areas;
Support of healthcare and HIV/AIDS programmes;
Support for educational programmes, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships;
Community training; skills development for unemployed people and adult basic education and training; or
Support of arts, cultural or sporting development programmes;

Development programmes for women, youth, people with disabilities, people living in rural areas;

Support of healthcare and HIV/AIDS programmes;

Support for educational programmes, resources and materials at primary, secondary and tertiary education level, as well as bursaries and scholarships;

Community training; skills development for unemployed people and adult basic education and training; or

Support of arts, cultural or sporting development programmes.

SOCIO-ECONOMIC PROJECT CONTRIBUTIONS
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: Projects focusing on environmental conservation, awareness, education and waste management; and Projects targeting infrastructural development or reconstruction in underdeveloped areas; rural communities or geographic areas identified in the Government’s integrated sustainable rural development or urban renewal programmes; New projects promoting beneficiaction.
Standard Valuation
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.
Start-up Enterprise
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 a continuation of a pre-existing enterprise.
Subsidiary
Its meaning is defined in section 1(3) of the Companies Act.
Superior Contributor to B-BBEE
A Level One to Level Three Contributor to B-BBEE.
Supplier
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.
Supplier Development Contributions
Monetary or non-monetary contributions carried out for the benefit of value-adding suppliers to the Measured Entity, to contribute to the development, sustainability and financial and operational independence of those beneficiaries: (a) Supplier development contributions to suppliers that are an EME or QSE, which are at least 51% black-owned or at least 51% black women owned.

T

Target
The targets for the various Elements in the Generic and QSE Scorecard.
The Act
The Broad-Based Black Economic Empowerment Act 53 of 2003.
The Codes
The Codes of Good Practice including all the statements as issued under section 9 of the Act.
the Generic Scorecard
The balanced B-BBEE scorecard as contained in statement 000.
The PFMA
The Public Finance Management Act 1 of 1999 as amended.
The QSE Scorecard
The QSE scorecard referred to in statement 000.
The Skills Development Act

This refers to the Skills Development Act of 1998.

The Skills Development Levies Act
This refers to the Skills Development Levies Act of 1999.
The Strategy Document
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.
Third Party Rights

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 in the Measured Entity;
(b) held against a juristic person or trust that is in the chain of ownership between the Measured Entity and that the eventual black Participant serving the same purpose mentioned in (a) above.

Total Labour Cost
The total amount of remuneration paid by an 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.
Total Revenue
The total income of an Entity from its operations as determined under South African Generally Accepted Accounting Practice.
Transformation Charters
The sectoral transformation charters referred to in section 12 of the Act.

U

Unemployed Learner
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.
Unincorporated Joint Venture
A joint venture between two or more Measured Entities affected by agreement without incorporation.

V

Verification

The process and activities conducted by a B-BBEE Verification Professional to assess, verify and validate that the score awarded to a Measured Entity is a result of individual scorecard elements supplied by a Measured Entity, and to evaluate BEE transactions in order to provide an indicative B-BBEE score and Certification based on the principles of the Broad-Based BEE Codes of Good Practice.

Verification Certificate

Refers to the B-BBEE Verification Certificate issued by the B-BBEE Verification Professional which reflects the overall B-BBEE Status of a Measured Entity and Scoring allocated for each Scorecard Element verified in respect of the Measured Entity.

Verification Date

The date of commencement of the on-site verification.
Verification Manual
The Amended B-BBEE Verification Manual published by the Minister of Trade and Industry for public comment on 30 October 2015 in terms of Section 9(1) and 14(2) of the B-BBEE Act.
Voting right
A voting right attaching to an Equity Instrument owned by or held for a participant measured using the Flow through Principle of Control.

W

Weighting
The weightings applied to various Elements in the Generic Scorecard and QSE Scorecard.
Workplace skills plan
The plan of a Measured Entity approved by the relevant SETA.

X

Y

Z