<?xml version="1.0" encoding="UTF-8"?><?xml-stylesheet title="XSL_formatting" type="text/xsl" href="http://beepartner.com/wp-content/feedxsl/feeder.xsl"?><rss version="2.0"
	xmlns:content="http://purl.org/rss/1.0/modules/content/"
	xmlns:wfw="http://wellformedweb.org/CommentAPI/"
	xmlns:dc="http://purl.org/dc/elements/1.1/"
	xmlns:atom="http://www.w3.org/2005/Atom"
	xmlns:sy="http://purl.org/rss/1.0/modules/syndication/"
	>

<channel>
	<title>BEE Partner, South Africa Economy Watch</title>
	<atom:link href="http://beepartner.com/feed/" rel="self" type="application/rss+xml" />
	<link>http://beepartner.com</link>
	<description>BEEPartner.com - Black Economic Empowerment in South Africa</description>
	<pubDate>Sun, 07 Jun 2009 21:18:57 +0000</pubDate>
	<generator>http://wordpress.org/?v=2.7.1</generator>
	<language>en</language>
	<sy:updatePeriod>hourly</sy:updatePeriod>
	<sy:updateFrequency>1</sy:updateFrequency>
			<item>
		<title>Black Economic Empowerment (BEE) once empowered always empowered principle</title>
		<link>http://beepartner.com/2009/06/07/black-economic-empowerment-bee-once-empowered-always-empowered/</link>
		<comments>http://beepartner.com/2009/06/07/black-economic-empowerment-bee-once-empowered-always-empowered/#comments</comments>
		<pubDate>Sun, 07 Jun 2009 21:18:57 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Economy]]></category>

		<category><![CDATA[Enterprise]]></category>

		<category><![CDATA[Fund]]></category>

		<category><![CDATA[Investment]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=262</guid>
		<description><![CDATA[Again this is a principle that applies exclusively to measuring ownership contributions. The principle has many different names, such as &#8220;one time all time&#8221;, &#8220;high water mark&#8221; and &#8220;continuing consequences&#8221;. When companies first started engaging in BEE, before there were standard measurement principles, they made the assumption that once they had sold a BEE stake, [...]]]></description>
			<content:encoded><![CDATA[<p>Again this is a <a href="http://beepartner.com/tag/principle/">principle</a> that applies exclusively to measuring <a href="http://beepartner.com/tag/ownership/">ownership</a> contributions. The <a href="http://beepartner.com/tag/principle/">principle</a> has many different names, such as &#8220;one time all time&#8221;, &#8220;high water mark&#8221; and &#8220;continuing consequences&#8221;. When companies first started engaging in <a href="http://beepartner.com/"><strong>BEE</strong></a>, before there were standard measurement <a href="http://beepartner.com/tag/principle/">principles</a>, they made the assumption that <a href="http://beepartner.com/tag/once/">once</a> they had sold a <a href="http://beepartner.com/"><strong>BEE</strong></a> stake, they would be able to <a href="http://beepartner.com/tag/recognise/">recognise</a> this contribution to <a href="http://beepartner.com/"><strong>BEE</strong></a> regardless of whether the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> remained in the <a href="http://beepartner.com/category/investment/">investment</a> or not.<span id="more-262"></span></p>
<p>The approach was also known as &#8220;<a href="http://beepartner.com/tag/once-empowered-always/"><big>once empowered always</big></a> <a href="http://beepartner.com/tag/empowered/">empowered</a>&#8220;. The challenge with this approach is that it is easily abused by selling an empowerment share and financing that stake. Dividends dry up, the <a href="http://beepartner.com/">BEE</a> partner cannot make the repayments and the <a href="http://beepartner.com/">BEE</a> shareholding reverts to the financiers. The <a href="http://beepartner.com/tag/business/">business</a> retains its <a href="http://beepartner.com/">BEE</a> status and the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> is left with nothing.</p>
<p>The ease of abuse discouraged the <a href="http://beepartner.com/tag/codes/">Codes</a> from recognising this <a href="http://beepartner.com/tag/principle/">principle</a> and the phase one drafts of the <a href="http://beepartner.com/tag/codes/">Codes</a> did not <a href="http://beepartner.com/tag/recognise/">recognise</a> it. Where the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> exited <a href="http://beepartner.com/tag/ownership/">ownership</a>, a new <a href="http://beepartner.com/tag/ownership/">ownership</a> calculation had to be done based on current credentials. Interestingly, it was <a href="http://beepartner.com/tag/black/">Black</a> businesspeople who approached the dti for a modified application of this <a href="http://beepartner.com/tag/principle/">principle</a>.</p>
<p><a href="http://beepartner.com/"><img src="http://beepartner.com/files/2008/04/beepartner.gif" border="0" alt="BEEPartner SA Economy" width="190" height="90" align="right" /></a></p>
<p>To protect itself from losing its <a href="http://beepartner.com/">BEE</a> partners, a <a href="http://beepartner.com/tag/business/">business</a> would insist on lock-in agreements signed by the <a href="http://beepartner.com/tag/black/">Black</a> <a href="http://beepartner.com/tag/party/">party</a>. The consequence of this, and from a <a href="http://beepartner.com/">BEE</a> perspective an unintended consequence, is that the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> is locked into the <a href="http://beepartner.com/category/investment/">investments</a>. In some instances where the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> is only looking for a fast profit, the lock in is good because it protects people from themselves. <a href="http://beepartner.com/">BEE</a> is trying to establish long-term participation in the <a href="http://beepartner.com/category/economy/">economy</a>. If it was a <a href="http://beepartner.com/tag/once/">once</a>-off event it would have been imposed as a wealth tax. On the other hand, there is a limit to how much you can protect people in <a href="http://beepartner.com/tag/business/">business</a>. Preventing <a href="http://beepartner.com/category/enterprise/">entrepreneurs</a> from realising profits and accessing <a href="http://beepartner.com/category/fund/">funds</a> restricts the growth of <a href="http://beepartner.com/tag/black/">Black</a>-owned capital and <a href="http://beepartner.com/category/economy/">economic</a> participation.</p>
<p>The end result is a middle ground that represents a conditional <a href="http://beepartner.com/tag/continued-recognition/"><strong>continued recognition</strong></a> of <a href="http://beepartner.com/tag/black-ownership/"><strong>Black ownership</strong></a>. This allows <a href="http://beepartner.com/tag/black/">Black</a> <a href="http://beepartner.com/category/enterprise/">entrepreneurs</a> to exit the <a href="http://beepartner.com/category/investment/">investment</a> and the <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> to continue recognising the <a href="http://beepartner.com/tag/black-ownership/"><strong>Black ownership</strong></a> participation. The conditions are onerous because the <a href="http://beepartner.com/tag/codes/">Codes</a> are still not in favour of the <a href="http://beepartner.com/tag/continued-recognition/"><strong>continued recognition</strong></a>. Very few <a href="http://beepartner.com/tag/business/">businesses</a> will retain the same amount of <a href="http://beepartner.com/tag/ownership/">ownership</a> <a href="http://beepartner.com/tag/points/">points</a> had the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> not exited.</p>
<p><strong> </strong></p>
<h3><strong>Application of the <a href="http://beepartner.com/tag/once-empowered-always/"><big>once empowered always</big></a> <a href="http://beepartner.com/tag/empowered-principle/"><strong>empowered principle</strong></a></strong></h3>
<p>The practical application of the <a href="http://beepartner.com/tag/once-empowered-always/"><big>once empowered always</big></a> <a href="http://beepartner.com/tag/empowered-principle/"><strong>empowered principle</strong></a> is technical so it has been simplified as much as possible. Keep in mind what is trying to be achieved. The <a href="http://beepartner.com/tag/codes/">Codes</a> are comfortable with <a href="http://beepartner.com/tag/limited-continued-recognition/"><big>limited continued recognition</big></a> where the exiting <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> can demonstrate successful transformation in the company it has been associated with and that there has been <a href="http://beepartner.com/tag/value/">value</a> created for the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a>.</p>
<p>If, after three years, the <a href="http://beepartner.com/tag/business/">business</a> has achieved a very good <a href="http://beepartner.com/">BEE</a> score and the <a href="http://beepartner.com/tag/black/">Black</a> <a href="http://beepartner.com/tag/party/">party</a> has realised wealth during the association, then the <a href="http://beepartner.com/tag/codes/">Codes</a> provide <a href="http://beepartner.com/tag/limited-continued-recognition/"><big>limited continued recognition</big></a> where the <a href="http://beepartner.com/tag/bee-party-sells/"><big>BEE party sells</big></a> a portion of its <a href="http://beepartner.com/tag/ownership/">ownership</a>.</p>
<p>There are two parts to the <a href="http://beepartner.com/tag/once-empowered-always/"><big>once empowered always</big></a> <a href="http://beepartner.com/tag/empowered-principle/"><strong>empowered principle</strong></a>. The first is an outright <a href="http://beepartner.com/tag/sale-of-shares/"><big>sale of shares</big></a>. The second is where the equity is used as security for obtaining finance where the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> subsequently defaults and loses the shareholding.</p>
<p><strong>1. <a href="http://beepartner.com/tag/sale-of-shares/"><big>Sale of shares</big></a>: </strong>Where a <a href="http://beepartner.com/tag/bee-party-sells/"><big>BEE party sells</big></a> a share of its empowerment holding, the <a href="http://beepartner.com/tag/ownership/">ownership</a> <a href="http://beepartner.com/tag/points/">points</a> of the <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> will survive the sale. The <a href="http://beepartner.com/tag/measured/">measured</a> <a href="http://beepartner.com/tag/entity-may-continue/"><big>entity may continue</big></a> to <a href="http://beepartner.com/tag/recognise/">recognise</a> the <a href="http://beepartner.com/tag/points/">points</a> based on a formula. The allowance is only available to the <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> where:</p>
<ul>
<li>the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> held the <a href="http://beepartner.com/tag/shares/">shares</a> in the company for a minimum period of three years</li>
<li>transformation has taken place in the <a href="http://beepartner.com/tag/measured/">measured</a> <a href="http://beepartner.com/category/enterprise/">enterprise</a></li>
<li>the <a href="http://beepartner.com/tag/points/">points</a> retained are subject to the level of transformation the <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> has achieved。</li>
<li><a href="http://beepartner.com/tag/value/">value</a> has been created in the hands of the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a>. (The <a href="http://beepartner.com/tag/value/">value</a> is determined in the formula using net <a href="http://beepartner.com/tag/value/">value</a> as a basis of calculation.)</li>
</ul>
<p><strong>2. </strong><strong>Loss of equity through security: In </strong>an <a href="http://beepartner.com/tag/ownership/">ownership</a> deal, the <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> is likely to include a clause preventing the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> from using the <a href="http://beepartner.com/tag/shares/">shares</a> as security against any outside <a href="http://beepartner.com/tag/borrowing/">borrowing</a>. Should the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> default on the <a href="http://beepartner.com/tag/borrowing/">borrowing</a>, the financier will claim the <a href="http://beepartner.com/">BEE</a> <a href="http://beepartner.com/tag/shares/">shares</a> and the <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> will lose its <a href="http://beepartner.com/tag/ownership/">ownership</a> credits. The <a href="http://beepartner.com/tag/once-empowered-always/"><big>once empowered always</big></a> <a href="http://beepartner.com/tag/empowered-principle/"><strong>empowered principle</strong></a> provides a method for bringing liquidity in the form of <a href="http://beepartner.com/tag/borrowing/">borrowing</a> against the <a href="http://beepartner.com/tag/shares/">shares</a> to the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> without penalising the <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> in the instance of default by the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a>.</p>
<p>If the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> borrows against <a href="http://beepartner.com/tag/shares/">shares</a> held in a <a href="http://beepartner.com/tag/measured-entity/"><strong>measured entity</strong></a> and defaults on that <a href="http://beepartner.com/tag/borrowing/">borrowing</a>, resulting in the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> losing the shareholding to the financier, the <a href="http://beepartner.com/tag/measured/">measured</a> <a href="http://beepartner.com/tag/entity-may-continue/"><big>entity may continue</big></a> to <a href="http://beepartner.com/tag/recognise/">recognise</a> the <a href="http://beepartner.com/tag/black-ownership/"><strong>Black ownership</strong></a>, or a portion thereof according to a formula.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/06/07/black-economic-empowerment-bee-once-empowered-always-empowered/feed/</wfw:commentRss>
	<dc:id>262</dc:id>	</item>
		<item>
		<title>Black Economic Empowerment stands the first to know your Ownership Scorecard</title>
		<link>http://beepartner.com/2009/05/31/black-economic-empowerment-stands-first-know-ownership-scorecard/</link>
		<comments>http://beepartner.com/2009/05/31/black-economic-empowerment-stands-first-know-ownership-scorecard/#comments</comments>
		<pubDate>Sun, 31 May 2009 01:40:03 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Compliant]]></category>

		<category><![CDATA[Economy]]></category>

		<category><![CDATA[Enterprise]]></category>

		<category><![CDATA[Fund]]></category>

		<category><![CDATA[Scorecard]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=259</guid>
		<description><![CDATA[A common misperception of ownership is that it relates to economic return exclusively. When ownership is broken down it includes two primary rights. The one is economic return and the other is control, or influence, over decision making, which is exercised through voting rights.
In the BEE environment, consideration must be given to the lack of [...]]]></description>
			<content:encoded><![CDATA[<p>A common misperception of <a href="http://beepartner.com/tag/ownership/">ownership</a> is that it relates to <a href="http://beepartner.com/category/economy/">economic</a> return exclusively. When <a href="http://beepartner.com/tag/ownership/">ownership</a> is broken down it includes two primary <a href="http://beepartner.com/tag/rights/">rights</a>. The one is <a href="http://beepartner.com/category/economy/">economic</a> return and the other is <a href="http://beepartner.com/tag/control/">control</a>, or influence, over decision making, which is exercised through <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a>.<span id="more-259"></span></p>
<p>In the <a href="http://beepartner.com/"><strong>BEE</strong></a> environment, consideration must be given to the lack of <a href="http://beepartner.com/category/fund/">funds</a> held by <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> entering <a href="http://beepartner.com/"><strong>BEE</strong></a> <a href="http://beepartner.com/tag/deals/">deals</a>. The necessity for finance provided an opportunity for ruthless businesspeople to undermine both the <a href="http://beepartner.com/tag/control/">control</a> and <a href="http://beepartner.com/category/economy/">economic</a> interest components held by <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> in <a href="http://beepartner.com/"><strong>BEE</strong></a> <a href="http://beepartner.com/tag/deals/">deals</a>. To prevent this abuse, the Codes introduced a third component known as realisation <a href="http://beepartner.com/tag/points/">points</a> and, more specifically, the <a href="http://beepartner.com/tag/net-value-indicator/"><big>net value indicator</big></a>. The <a href="http://beepartner.com/tag/net-value-indicator/"><big>net value indicator</big></a> measures the <a href="http://beepartner.com/tag/black/">Black</a> person&#8217;s unencumbered (debt free) right of <a href="http://beepartner.com/tag/ownership/">ownership</a>. By allocating a high <a href="http://beepartner.com/tag/points/">points</a> rating to the <a href="http://beepartner.com/tag/net-value-indicator/"><big>net value indicator</big></a>, businesses are encouraged to reduce systematically the level of debt over the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s shareholding.</p>
<p><a href="http://beepartner.com/"><img src="http://beepartner.com/files/2008/04/beepartner.gif" border="0" alt="BEEPartner SA Economy" width="190" height="90" align="right" /></a></p>
<h3><a href="http://beepartner.com/tag/voting-rights/"><strong>Voting Rights</strong></a></h3>
<p>The objective of <a href="http://beepartner.com/">BEE</a> is to help <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> gain equal <a href="http://beepartner.com/tag/ownership/">ownership</a> and <a href="http://beepartner.com/tag/control/">control</a> of the mainstream <a href="http://beepartner.com/category/economy/">economy</a>. <a href="http://beepartner.com/tag/ownership/">Ownership</a> without <a href="http://beepartner.com/tag/control/">control</a> represents passive <a href="http://beepartner.com/tag/participation/">participation</a>. This indicates redistribution rather than active <a href="http://beepartner.com/tag/participation/">participation</a>. <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> fought a hard struggle to gain the right to <a href="http://beepartner.com/tag/vote/">vote</a> in the political environment. <a href="http://beepartner.com/tag/voting-rights/"><strong>Voting rights</strong></a> attached to <a href="http://beepartner.com/tag/ownership/">ownership</a> represent the right to <a href="http://beepartner.com/tag/vote/">vote</a> in the <a href="http://beepartner.com/category/economy/">economic</a> environment.</p>
<p>The importance of <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> is evident in the <a href="http://beepartner.com/tag/companies-act/"><strong>Companies Act</strong></a>, which only looks at <a href="http://beepartner.com/tag/control/">control</a> to determine whether one business is a subsidiary of another business. The <a href="http://beepartner.com/tag/companies-act/"><strong>Companies Act</strong></a> has no reference to <a href="http://beepartner.com/category/economy/">economic</a> benefit when measuring subsidiaries. <a href="http://beepartner.com/tag/control/">Control</a> is <a href="http://beepartner.com/tag/measured/">measured</a> through <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> either at a shareholder or board <a href="http://beepartner.com/tag/participation/">participation</a> level. <a href="http://beepartner.com/">BEE</a> parties approaching <a href="http://beepartner.com/tag/ownership/">ownership</a> <a href="http://beepartner.com/tag/deals/">deals</a> without sufficient regard for the necessity of preserving commensurate <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> are not using the <a href="http://beepartner.com/">BEE</a> policy for its intended purpose.</p>
<p>Where the <a href="http://beepartner.com/">BEE</a> <a href="http://beepartner.com/tag/participation/">participation</a> is financed by either the vendor (the seller) or a third <a href="http://beepartner.com/tag/party/">party</a>, <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> may be held by the <a href="http://beepartner.com/tag/financier/">financier</a> as security for the provision of the <a href="http://beepartner.com/category/fund/">funds</a>. The <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> should negotiate the release of those <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> on the basis that they will only revert to the <a href="http://beepartner.com/tag/financier-on-default/"><big>financier on default</big></a> of repayment, which the <a href="http://beepartner.com/tag/financier/">financier</a> will insist on to protect its interests.</p>
<p>The <a href="http://beepartner.com/tag/ownership/">ownership</a> <a href="http://beepartner.com/category/scorecard/">scorecard</a> is designed to protect the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> by including an <a href="http://beepartner.com/tag/indicator/">indicator</a> set to measure <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> in the entity in the hands of <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a>.</p>
<p>Some businesses use a broad base of <a href="http://beepartner.com/">BEE</a> shareholders in <a href="http://beepartner.com/tag/ownership/">ownership</a> <a href="http://beepartner.com/tag/deals/">deals</a> with the specific intention of undermining the impact of <a href="http://beepartner.com/tag/black/">Black</a>- held <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a>. It is unlikely that a multitude of <a href="http://beepartner.com/tag/people/">people</a> with an insignificant shareholding are going to <a href="http://beepartner.com/tag/vote/">vote</a> uniformly on an issue. Where <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> find themselves in this situation, they should consider pooling their <a href="http://beepartner.com/tag/vote/">votes</a> under a <a href="http://beepartner.com/tag/voting/">voting</a> agreement to regain the necessary <a href="http://beepartner.com/tag/participation/">participation</a> in decision making.</p>
<p>The term &#8220;<a href="http://beepartner.com/tag/control/">control</a>&#8220;, used in the context of <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a>, is misleading and sends the wrong message to existing business owners. The targets set by the Codes are not indicative of <a href="http://beepartner.com/tag/control/">control</a>, but rather influence through <a href="http://beepartner.com/tag/participation/">participation</a>. The targets are set in consideration of the <a href="http://beepartner.com/tag/companies-act/"><strong>Companies Act</strong></a> requiring a 75% majority <a href="http://beepartner.com/tag/vote/">vote</a> to pass a special resolution. Setting a target of 25% + 1 <a href="http://beepartner.com/tag/vote/">vote</a> gives the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> the ability to protect itself against unfair decisions made by the company, commonly known as minority protection <a href="http://beepartner.com/tag/rights/">rights</a>, but it does not give <a href="http://beepartner.com/tag/control/">control</a>.</p>
<p><strong>Measuring <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a></strong></p>
<p><a href="http://beepartner.com/tag/six-points/"><strong>Six points</strong></a> or a part thereof are available where <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> hold the right to participate in 25% + 1 of <a href="http://beepartner.com/tag/vote/">votes</a> at shareholders meetings. Where the full target of 25% + 1 of <a href="http://beepartner.com/tag/total-voting-rights/"><big>total voting rights</big></a> is not met, the <a href="http://beepartner.com/tag/points/">points</a> are awarded on a pro-rata basis.</p>
<p>The <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> may be <a href="http://beepartner.com/tag/measured/">measured</a> according to the <a href="http://beepartner.com/tag/flow-through/">flow-through</a> or modified <a href="http://beepartner.com/tag/flow-through/">flow-through</a> principles as discussed in the section on measurement principles.</p>
<p>Where the <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> are pledged to a <a href="http://beepartner.com/tag/financier/">financier</a>, so that the <a href="http://beepartner.com/tag/financier/">financier</a> takes <a href="http://beepartner.com/tag/control/">control</a> of the <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> if the <a href="http://beepartner.com/tag/bee-party/"><strong>BEE party</strong></a> defaults, the <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> may be recognised as held by <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> on condition that the <a href="http://beepartner.com/tag/financier/">financier</a> has no influence over the <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> until reverting to the <a href="http://beepartner.com/tag/financier-on-default/"><big>financier on default</big></a>.</p>
<h3>Calculating the <a href="http://beepartner.com/tag/points/">points</a> for <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a></h3>
<p><strong><a href="http://beepartner.com/tag/voting/">Voting</a> right <a href="http://beepartner.com/tag/points/">points</a> are <a href="http://beepartner.com/tag/measured/">measured</a> using the formula:</strong></p>
<p><strong>A = B/C x D</strong></p>
<p><strong>The score A is calculated as follows:</strong></p>
<p><a href="http://beepartner.com/tag/step/">Step</a> 1 <em>B = </em>Calculate the percentage of exercisable <a href="http://beepartner.com/tag/voting-rights/"><strong>voting rights</strong></a> held by <a href="http://beepartner.com/tag/black-people/"><strong>Black people</strong></a> of the <a href="http://beepartner.com/tag/total-voting-rights/"><big>total voting rights</big></a>.</p>
<p><a href="http://beepartner.com/tag/step/">Step</a> 2 Divide the <a href="http://beepartner.com/tag/result-of-step/"><big>result of Step</big></a> 1 by <em>C, </em>the <a href="http://beepartner.com/category/compliant/">compliance</a> target for the <a href="http://beepartner.com/tag/ownership/">ownership</a> criteria being <a href="http://beepartner.com/tag/measured/">measured</a> (25% of total <a href="http://beepartner.com/tag/vote/">votes</a> available + 1 <a href="http://beepartner.com/tag/vote/">vote</a>).</p>
<p><a href="http://beepartner.com/tag/step/">Step</a> 3 Multiply the <a href="http://beepartner.com/tag/result-of-step/"><big>result of Step</big></a> 2 by <em>D, </em>the <a href="http://beepartner.com/tag/points/">points</a> weighting of that <a href="http://beepartner.com/tag/indicator/">indicator</a>, which is <a href="http://beepartner.com/tag/six/">six</a>.</p>
<p><a href="http://beepartner.com/tag/step/">Step</a> 1 may apply the modified <a href="http://beepartner.com/tag/flow-through/">flow-through</a> principle or the <a href="http://beepartner.com/tag/flow-through/">flow-through</a> principle.</p>
<p>Where the <a href="http://beepartner.com/category/enterprise/">enterprise</a> achieves a score greater than the allocated <a href="http://beepartner.com/tag/six-points/"><strong>six points</strong></a>, the <a href="http://beepartner.com/category/scorecard/">scorecard</a> will only recognise a maximum of <a href="http://beepartner.com/tag/six-points/"><strong>six points</strong></a>.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/31/black-economic-empowerment-stands-first-know-ownership-scorecard/feed/</wfw:commentRss>
	<dc:id>259</dc:id>	</item>
		<item>
		<title>Attention BEE Partners, Money matters, do you have enough Share of Income?</title>
		<link>http://beepartner.com/2009/05/31/attention-bee-partners-money-matters-you-enough-share-income/</link>
		<comments>http://beepartner.com/2009/05/31/attention-bee-partners-money-matters-you-enough-share-income/#comments</comments>
		<pubDate>Sun, 31 May 2009 01:27:09 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Black Economic Empowerment]]></category>

		<category><![CDATA[Define]]></category>

		<category><![CDATA[Documents]]></category>

		<category><![CDATA[Economy]]></category>

		<category><![CDATA[Government]]></category>

		<category><![CDATA[Investment]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=257</guid>
		<description><![CDATA[Economic interest is a participant&#8217;s right to share in the economic fruits of the business. The legal form of the distribution is not important, but normally comes in the form of dividends and capital gains. The Codes define it as a claim against the entity representing return on ownership of the entity similar in nature [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://beepartner.com/category/economy/">Economic</a> <a href="http://beepartner.com/tag/interest/">interest</a> is a <a href="http://beepartner.com/tag/participant/">participant</a>&#8217;s right to share in the <a href="http://beepartner.com/category/economy/">economic</a> fruits of the <a href="http://beepartner.com/tag/business/">business</a>. The legal <a href="http://beepartner.com/tag/form/">form</a> of the distribution is not important, but normally comes in the <a href="http://beepartner.com/tag/form/">form</a> of dividends and capital gains. The <a href="http://beepartner.com/tag/codes/">Codes</a> <a href="http://beepartner.com/category/define/">define</a> it as a claim against the <a href="http://beepartner.com/tag/entity/">entity</a> representing <a href="http://beepartner.com/tag/return/">return</a> on <a href="http://beepartner.com/tag/ownership/">ownership</a> of the <a href="http://beepartner.com/tag/entity/">entity</a> similar in nature to a dividend right.<span id="more-257"></span></p>
<p>The <a href="http://beepartner.com/tag/problem/">problem</a> arising out of <a href="http://beepartner.com/category/economy/">economic</a> <a href="http://beepartner.com/tag/interest/">interest</a> is that many <a href="http://beepartner.com/tag/business/">businesses</a> abused their <a href="http://beepartner.com/"><strong>BEE</strong></a> partners by stripping <a href="http://beepartner.com/tag/profits/">profits</a> out of the <a href="http://beepartner.com/tag/entity/">entity</a> before distributing <a href="http://beepartner.com/tag/return/">returns</a>. Earlier drafts of the <a href="http://beepartner.com/tag/codes/">Codes</a> provided an anti- circumvention clause in the definition, which gave more specific guidance on what should be included in <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a>.</p>
<p>The current definition of <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> was shortened in the <a href="http://beepartner.com/tag/interest/">interests</a> of making the <a href="http://beepartner.com/tag/codes/">Codes</a> easier to use. The <a href="http://beepartner.com/tag/problem/">problem</a> is that in shortening it, the guidance given to users is incomplete, which may result in misinterpretation. The following is not in the <a href="http://beepartner.com/tag/codes/">Codes</a>. However, it reveals the underlying intention of the <a href="http://beepartner.com/tag/codes/">Codes</a> according to earlier, more comprehensive drafts.</p>
<p><a href="http://beepartner.com/"><img src="http://beepartner.com/files/2008/04/beepartner.gif" border="0" alt="BEEPartner SA Economy" width="190" height="90" align="right" /></a></p>
<p>Where a <a href="http://beepartner.com/tag/verification-agency/"><strong>verification agency</strong></a> or customer identifies any of the following, the <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> held by Black people will be calculated as a percentage of the <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> had the circumventive strategy not existed. For example, the excessive <a href="http://beepartner.com/tag/salaries/">salaries</a> paid to non-Black people would be included as <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> in the hands of the non-Black parties for the purposes of calculating the <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> points.</p>
<h3><strong>BEE Partners&#8217; Salaries</strong></h3>
<p><a href="http://beepartner.com/tag/salaries/">Salaries</a> do not <a href="http://beepartner.com/tag/form/">form</a> <a href="http://beepartner.com/tag/part-of-economic/"><big>part of economic</big></a> <a href="http://beepartner.com/tag/interest/">interest</a>. However, where a salary is paid that is not a reasonable reflection of the <a href="http://beepartner.com/tag/market-value/"><strong>market value</strong></a> of the director or employee, the portion above <a href="http://beepartner.com/tag/market-value/"><strong>market value</strong></a> should <a href="http://beepartner.com/tag/form/">form</a> <a href="http://beepartner.com/tag/part-of-economic/"><big>part of economic</big></a> <a href="http://beepartner.com/tag/interest/">interest</a>. The <a href="http://beepartner.com/tag/problem/">problem</a> intensifies when a person earns a salary based on celebrity status, which is difficult to measure in terms of a <a href="http://beepartner.com/tag/market/">market</a> standard. <a href="http://beepartner.com/tag/verification/">Verification</a> agencies will review the reasonableness of a celebrity-related salary in terms of the benefit that person brings to the <a href="http://beepartner.com/tag/business/">business</a>.</p>
<p>In the small <a href="http://beepartner.com/tag/business/">business</a> environment, <a href="http://beepartner.com/tag/salaries/">salaries</a> are going to present a significent obstacle. <a href="http://beepartner.com/tag/business/">Business</a> owners often reduce their own <a href="http://beepartner.com/tag/salaries/">salaries</a> and extract a higher dividend for tax purposes. Alternatively, the <a href="http://beepartner.com/tag/salaries/">salaries</a> are reduced to ease the <a href="http://beepartner.com/tag/business/">business</a>&#8217;s cash flow.</p>
<p>The <a href="http://beepartner.com/tag/verification-agency/"><strong>verification agency</strong></a> must apply a degree of discretion in determining the reasonableness of the remuneration package when considering what constitutes <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> and what is a bona fide expense of the <a href="http://beepartner.com/tag/business/">business</a>.</p>
<p>Bonuses are also commonly used as a mechanism to strip <a href="http://beepartner.com/tag/profits/">profits</a>. The <a href="http://beepartner.com/tag/verification-agency/"><strong>verification agency</strong></a> will review the basis on which the bonus has been allocated. If a bonus is not based on a coherent, quantifiable, previously agreed upon methodology, such as a defined performance management system, it begins to resemble <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> and invites further investigation.</p>
<h3><strong><a href="http://beepartner.com/tag/transfer-pricing/"><strong>Transfer pricing</strong></a></strong></h3>
<p><a href="http://beepartner.com/tag/transfer-pricing/"><strong>Transfer pricing</strong></a> is another common mechanism for reducing <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> paid by an <a href="http://beepartner.com/tag/entity/">entity</a> to shareholders. <a href="http://beepartner.com/tag/transfer-pricing/"><strong>Transfer pricing</strong></a> is where a <a href="http://beepartner.com/tag/business/">business</a> sells goods or services to a related <a href="http://beepartner.com/tag/business/">business</a> at a discount or premium on <a href="http://beepartner.com/tag/market-value/"><strong>market value</strong></a>, to reallocate <a href="http://beepartner.com/tag/profits/">profits</a> from one <a href="http://beepartner.com/tag/entity/">entity</a> to another for the purpose of reducing the <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> going to a certain shareholder.</p>
<p>For example, Mr A owns X <a href="http://beepartner.com/tag/cc/">CC</a> and Y (<a href="http://beepartner.com/tag/pty/">Pty</a>) <a href="http://beepartner.com/tag/ltd/">Ltd</a>. Mr A sells 25% of X <a href="http://beepartner.com/tag/cc/">CC</a> to a <a href="http://beepartner.com/"><strong>BEE</strong></a> <a href="http://beepartner.com/tag/participant/">participant</a>. In an attempt to reduce the profit share due to the <a href="http://beepartner.com/"><strong>BEE</strong></a> <a href="http://beepartner.com/tag/participant/">participant</a>, Y (<a href="http://beepartner.com/tag/pty/">Pty</a>) <a href="http://beepartner.com/tag/ltd/">Ltd</a> sells stock to X <a href="http://beepartner.com/tag/cc/">CC</a> at an inflated amount above <a href="http://beepartner.com/tag/market-value/"><strong>market value</strong></a>. X <a href="http://beepartner.com/tag/cc/">CC</a>, holding a good <a href="http://beepartner.com/">BEE</a> status level, secures the right to sell the stock to a <a href="http://beepartner.com/category/government/">government</a> department. The profit distributed to the <a href="http://beepartner.com/">BEE</a> <a href="http://beepartner.com/tag/participant/">participant</a> is reduced and Mr A realises a higher profit through Y (<a href="http://beepartner.com/tag/pty/">Pty</a>) <a href="http://beepartner.com/tag/ltd/">Ltd</a>.</p>
<p><a href="http://beepartner.com/tag/verification/">Verification</a> agencies are aware of <a href="http://beepartner.com/tag/business/">businesses</a> using <a href="http://beepartner.com/tag/transfer-pricing/"><strong>transfer pricing</strong></a> to strip <a href="http://beepartner.com/tag/profits/">profits</a>. The <a href="http://beepartner.com/tag/economic-interest/"><strong>economic interest</strong></a> held by Black people will be calculated using a <a href="http://beepartner.com/tag/market/">market</a>-related price for the sale of goods from Y (<a href="http://beepartner.com/tag/pty/">Pty</a>) <a href="http://beepartner.com/tag/ltd/">Ltd</a> to X <a href="http://beepartner.com/tag/cc/">CC</a>. In addition to this, the practice may be reported as fronting.</p>
<h3><strong>Thin capitalisation</strong></h3>
<p>Thin capitalisation is similar to <a href="http://beepartner.com/tag/transfer-pricing/"><strong>transfer pricing</strong></a> but the <a href="http://beepartner.com/tag/profits/">profits</a> are stripped out of one <a href="http://beepartner.com/tag/business/">business</a> in favour of another by charging excessive <a href="http://beepartner.com/tag/interest/">interest</a> rates. This practice will be dealt with in the same manner as <a href="http://beepartner.com/tag/transfer-pricing/"><strong>transfer pricing</strong></a>.</p>
<h3><strong><a href="http://beepartner.com/tag/debt/">Debt</a> and <a href="http://beepartner.com/tag/preference-shares/"><strong>preference shares</strong></a></strong></h3>
<p><a href="http://beepartner.com/tag/debt/">Debt</a> in favour of a <a href="http://beepartner.com/">BEE</a> party is not <a href="http://beepartner.com/tag/ownership/">ownership</a> and <a href="http://beepartner.com/tag/interest/">interest</a> payments will not be <a href="http://beepartner.com/tag/measured-as-economic/"><big>measured as economic</big></a> <a href="http://beepartner.com/tag/interest/">interest</a>.</p>
<p>While senior <a href="http://beepartner.com/tag/debt/">debt</a> in its primary <a href="http://beepartner.com/tag/form/">form</a> does not present a <a href="http://beepartner.com/tag/problem/">problem</a>, the <a href="http://beepartner.com/tag/difference-between-debt/"><big>difference between debt</big></a> and equity is often difficult to determine when <a href="http://beepartner.com/tag/preference-shares/"><strong>preference shares</strong></a>, debentures and derivative instruments are used. The <a href="http://beepartner.com/tag/verification-agency/"><strong>verification agency</strong></a> will look at the nature of the instrument to determine whether the distribution represents <a href="http://beepartner.com/tag/interest/">interest</a> that is not <a href="http://beepartner.com/tag/measured-as-economic/"><big>measured as economic</big></a> <a href="http://beepartner.com/tag/interest/">interest</a>, or dividends that are <a href="http://beepartner.com/tag/measured-as-economic/"><big>measured as economic</big></a> <a href="http://beepartner.com/tag/interest/">interest</a>.</p>
<p><strong>The characteristics of <a href="http://beepartner.com/tag/debt/">debt</a> are:</strong></p>
<ul>
<li>A fixed <a href="http://beepartner.com/tag/interest/">interest</a> rate or fixed rate of <a href="http://beepartner.com/tag/return/">return</a></li>
<li>A fixed period of repayment</li>
<li>Where the <a href="http://beepartner.com/tag/return/">return</a> is not dependent on the performance of the <a href="http://beepartner.com/tag/business/">business</a>.</li>
<li>The characteristic of <a href="http://beepartner.com/tag/ownership/">ownership</a> is a <a href="http://beepartner.com/tag/return/">return</a> on <a href="http://beepartner.com/category/investment/">investment</a> based on the performance of the <a href="http://beepartner.com/tag/business/">business</a>.</li>
</ul>
<p><a href="http://beepartner.com/tag/business/">Businesses</a> choosing to structure <a href="http://beepartner.com/tag/ownership/">ownership</a> deals using <a href="http://beepartner.com/tag/preference-shares/"><strong>preference shares</strong></a> or derivative instruments must fully understand the <a href="http://beepartner.com/tag/difference-between-debt/"><big>difference between debt</big></a> and <a href="http://beepartner.com/tag/ownership/">ownership</a>, otherwise the <a href="http://beepartner.com/tag/verification-agency/"><strong>verification agency</strong></a> will not credit them with the anticipated points.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/31/attention-bee-partners-money-matters-you-enough-share-income/feed/</wfw:commentRss>
	<dc:id>257</dc:id>	</item>
		<item>
		<title>BEE Party&#8217;s Debt-free Ownership: the Money is under your name continued</title>
		<link>http://beepartner.com/2009/05/25/bee-party-debt-free-ownership-money-under-name-continued/</link>
		<comments>http://beepartner.com/2009/05/25/bee-party-debt-free-ownership-money-under-name-continued/#comments</comments>
		<pubDate>Mon, 25 May 2009 04:30:04 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Africa]]></category>

		<category><![CDATA[Black Economic Empowerment]]></category>

		<category><![CDATA[Economy]]></category>

		<category><![CDATA[Enterprise]]></category>

		<category><![CDATA[Finance]]></category>

		<category><![CDATA[Fund]]></category>

		<category><![CDATA[Investment]]></category>

		<category><![CDATA[Stocks]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=253</guid>
		<description><![CDATA[BEE Party&#8217;s Net value calculation
The net value calculation is broken down into two formulae and draws from the deemed net value result above. The first, Formula A, calculates the debt-free ownership as calculated above, as a percentage of the targeted debt-free ownership for the year, measured as a pro-rata score against the allocated points.
 
Formula [...]]]></description>
			<content:encoded><![CDATA[<h3><strong><a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE Party</strong></a>&#8217;s <a href="http://bible.postedpost.com/tag/net-value-calculation/"><big>Net value calculation</big></a></strong></h3>
<p>The <a href="http://bible.postedpost.com/tag/net-value-calculation/"><big>net value calculation</big></a> is broken down into two formulae and draws from the <a href="http://bible.postedpost.com/tag/deemed-net-value/"><big>deemed net value</big></a> <a href="http://bible.postedpost.com/tag/result/">result</a> above. The <a href="http://bible.postedpost.com/tag/first/">first</a>, <a href="http://bible.postedpost.com/tag/formula/">Formula</a> A, calculates the <a href="http://bible.postedpost.com/tag/debt-free-ownership/"><strong>debt-free ownership</strong></a> as <a href="http://bible.postedpost.com/tag/calculated/">calculated</a> above, as a percentage of the <a href="http://bible.postedpost.com/tag/targeted-debt-free-ownership/"><big>targeted debt-free ownership</big></a> for the <a href="http://bible.postedpost.com/tag/year/">year</a>, measured as a pro-rata score against the <a href="http://bible.postedpost.com/tag/allocated/">allocated</a> <a href="http://bible.postedpost.com/tag/points/">points</a>.<span id="more-253"></span></p>
<p><strong> </strong></p>
<h3><strong><a href="http://bible.postedpost.com/tag/formula/">Formula</a> A</strong></h3>
<p><strong>Note: </strong>This <a href="http://bible.postedpost.com/tag/formula/">formula</a> is a simplified version of what appears in the Codes. However, the <a href="http://bible.postedpost.com/tag/result/">result</a> is the same.</p>
<p><em>A </em><em><sup>=9B/25%C </sup></em></p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 1 </strong>Extract <em>B, </em>the <a href="http://bible.postedpost.com/tag/deemed-net-value/"><big>deemed net value</big></a>, from the <a href="http://bible.postedpost.com/tag/result/">result</a> of the <a href="http://bible.postedpost.com/tag/formula/">formula</a> above.</p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 2 </strong>Calculate <em>C. </em>The graduation factor is the time-based <a href="http://bible.postedpost.com/tag/target/">target</a> as set out below:</p>
<ul>
<li>10% at the end of the <a href="http://bible.postedpost.com/tag/first/">first</a> <a href="http://bible.postedpost.com/tag/year/">year</a> after the <a href="http://bible.postedpost.com/tag/net-value-date/"><big>net value date</big></a>. The <a href="http://bible.postedpost.com/tag/net-value-date/"><big>net value date</big></a> is the later of the <a href="http://bible.postedpost.com/tag/date/">date</a> of 9 February 2007 and the <a href="http://bible.postedpost.com/tag/date/">date</a> on which the <a href="http://bible.postedpost.com/tag/first/">first</a> unconditional <a href="http://bible.postedpost.com/tag/bee/">BEE</a> <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> <a href="http://bible.postedpost.com/tag/deal/">deal</a> that is still operational became effective. If a <a href="http://bible.postedpost.com/tag/deal-was-done/"><big>deal was done</big></a> before 9 February 2007 then the <a href="http://bible.postedpost.com/tag/net-value-date/"><big>net value date</big></a> is 9 Feb 2007. If the <a href="http://bible.postedpost.com/tag/deal-was-done/"><big>deal was done</big></a> after 9 February 2007, then the <a href="http://bible.postedpost.com/tag/net-value-date/"><big>net value date</big></a> is the <a href="http://bible.postedpost.com/tag/date/">date</a> that the <a href="http://bible.postedpost.com/tag/bee/">BEE</a> <a href="http://bible.postedpost.com/tag/deal/">deal</a> became effective.</li>
<li>20% at the end of the second <a href="http://bible.postedpost.com/tag/year/">year</a></li>
<li>40% from the <a href="http://bible.postedpost.com/tag/first/">first</a> day of the third <a href="http://bible.postedpost.com/tag/year/">year</a> to the <a href="http://bible.postedpost.com/tag/last/">last</a> day of the fourth <a href="http://bible.postedpost.com/tag/year/">year</a></li>
<li>60% from the <a href="http://bible.postedpost.com/tag/first/">first</a> day of the fifth <a href="http://bible.postedpost.com/tag/year/">year</a> to the <a href="http://bible.postedpost.com/tag/last/">last</a> day of the sixth <a href="http://bible.postedpost.com/tag/year/">year</a></li>
<li>80% from the <a href="http://bible.postedpost.com/tag/first/">first</a> day of the seventh <a href="http://bible.postedpost.com/tag/year/">year</a> to the <a href="http://bible.postedpost.com/tag/last/">last</a> day of the eighth <a href="http://bible.postedpost.com/tag/year/">year</a></li>
<li>100% from the <a href="http://bible.postedpost.com/tag/first/">first</a> day of the ninth <a href="http://bible.postedpost.com/tag/year/">year</a> to the <a href="http://bible.postedpost.com/tag/last/">last</a> day of the tenth <a href="http://bible.postedpost.com/tag/year/">year</a>.</li>
</ul>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 3 </strong><a href="http://bible.postedpost.com/tag/multiply-the-result/"><big>Multiply the result</big></a> of <a href="http://bible.postedpost.com/tag/step/">Step</a> 2 by the <a href="http://bible.postedpost.com/tag/economic-interest/"><strong>economic interest</strong></a> <a href="http://bible.postedpost.com/tag/target/">target</a> of 25%. This provides the <a href="http://bible.postedpost.com/tag/targeted-debt-free-ownership/"><big>targeted debt-free ownership</big></a> for the <a href="http://bible.postedpost.com/tag/year/">year</a>.</p>
<p><a href="http://bible.postedpost.com/"><img src="http://bible.postedpost.com/files/2008/07/bible.gif" border="0" alt="Bible Stories" width="200" height="100" align="right" /></a></p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 4 </strong>Divide <a href="http://bible.postedpost.com/tag/step/">Step</a> 1, the <a href="http://bible.postedpost.com/tag/deemed-net-value/"><big>deemed net value</big></a> or actual <a href="http://bible.postedpost.com/tag/debt-free-ownership/"><strong>debt-free ownership</strong></a>, by the <a href="http://bible.postedpost.com/tag/result-of-step/"><big>result of Step</big></a> 3, the <a href="http://bible.postedpost.com/tag/targeted-debt-free-ownership/"><big>targeted debt-free ownership</big></a>. <strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 5 </strong><a href="http://bible.postedpost.com/tag/multiply-the-result/"><big>Multiply the result</big></a> of <a href="http://bible.postedpost.com/tag/step/">Step</a> 4 by the <a href="http://bible.postedpost.com/tag/allocated/">allocated</a> nine <a href="http://bible.postedpost.com/tag/points/">points</a>.</p>
<p>The <a href="http://bible.postedpost.com/tag/result/">result</a> is <em>A, </em>the pro-rata portion of the <a href="http://bible.postedpost.com/tag/allocated/">allocated</a> <a href="http://bible.postedpost.com/tag/points/">points</a>. This <a href="http://bible.postedpost.com/tag/result/">result</a> must be compared to the <a href="http://bible.postedpost.com/tag/result-of-formula/"><big>result of Formula</big></a> B and the lower of the two scores adopted.</p>
<p>The problem with <a href="http://bible.postedpost.com/tag/formula/">Formula</a> A is that it does not measure the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s overall <a href="http://bible.postedpost.com/tag/shareholding/">shareholding</a>. Therefore, full <a href="http://bible.postedpost.com/tag/points/">points</a> could be scored if the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a> only owned 5% of the business, which undermines the objective. <a href="http://bible.postedpost.com/tag/formula/">Formula</a> B is introduced to limit the <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a> <a href="http://bible.postedpost.com/tag/points/">points</a> where the <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> <a href="http://bible.postedpost.com/tag/target/">target</a> is not reached. <a href="http://bible.postedpost.com/tag/formula/">Formula</a> B limits measurement according to the <a href="http://bible.postedpost.com/tag/strict-flow-through-principle/"><big>strict flow-through principle</big></a>, which has important consequences. Where the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a> has financed the acquisition through the sale of equity to white parties in a <a href="http://bible.postedpost.com/tag/bee/">BEE</a> vehicle, the portion of the <a href="http://bible.postedpost.com/tag/bee/">BEE</a> vehicle owned by white parties is not recognised as <a href="http://bible.postedpost.com/tag/black/">Black</a> owned. The <a href="http://bible.postedpost.com/tag/modified-flow-through-principle/"><big>modified flow-through principle</big></a> is not applicable here – the <a href="http://bible.postedpost.com/tag/strict-flow-through-principle/"><big>strict flow-through principle</big></a> must be used. It is important that <a href="http://bible.postedpost.com/tag/formula/">Formula</a> B is <a href="http://bible.postedpost.com/tag/calculated/">calculated</a> using actual <a href="http://bible.postedpost.com/tag/black/">Black</a> <a href="http://bible.postedpost.com/tag/shareholding/">shareholding</a> only.</p>
<p><a href="http://bible.postedpost.com/tag/formula/">Formula</a> B is as follows: A = B/C * 9</p>
<p><em>A = </em>the score to be compared against the <a href="http://bible.postedpost.com/tag/result-of-formula/"><big>result of Formula</big></a> A</p>
<p><em>B = </em>the percentage of <a href="http://bible.postedpost.com/tag/economic-interest/"><strong>economic interest</strong></a> <a href="http://bible.postedpost.com/tag/black/">Black</a> participants hold in the entity. The Codes state &#8220;<a href="http://bible.postedpost.com/tag/black/">Black</a> participants&#8221;, which means natural <a href="http://bible.postedpost.com/tag/black-people/"><strong>Black people</strong></a>. This restricts measurement to the flow- through <a href="http://bible.postedpost.com/tag/principle/">principle</a> and the <a href="http://bible.postedpost.com/tag/modified-flow-through-principle/"><big>modified flow-through principle</big></a> is not allowed.</p>
<p><em>C </em>= the <a href="http://bible.postedpost.com/tag/target/">target</a> in respect of the <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> criteria (that is, 25%).</p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 6 </strong>Calculate <em>B, </em>the percentage <a href="http://bible.postedpost.com/tag/shareholding/">shareholding</a> in the hands of natural <a href="http://bible.postedpost.com/tag/black/">Black</a> persons using the <a href="http://bible.postedpost.com/tag/flow-through-principle/"><strong>flow-through principle</strong></a>.<br />
<strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 7 </strong>Divide the <a href="http://bible.postedpost.com/tag/result-of-step/"><big>result of Step</big></a> 6 by <em>C, </em>the <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> <a href="http://bible.postedpost.com/tag/target/">target</a> of 25%.<br />
<strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 8 </strong><a href="http://bible.postedpost.com/tag/multiply-the-result/"><big>Multiply the result</big></a> of <a href="http://bible.postedpost.com/tag/step/">Step</a> 7 by 9 <a href="http://bible.postedpost.com/tag/points/">points</a> to establish the prorata share of <a href="http://bible.postedpost.com/tag/points/">points</a> <a href="http://bible.postedpost.com/tag/allocated/">allocated</a> to the indicator.</p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 9 </strong>Compare the <a href="http://bible.postedpost.com/tag/result/">results</a> of <a href="http://bible.postedpost.com/tag/step/">Step</a> 8 and <a href="http://bible.postedpost.com/tag/step/">Step</a> 5 and take the lower of the two forward to the <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> <a href="http://bible.postedpost.com/tag/scorecard/">scorecard</a>.</p>
<p><strong><a href="http://bible.postedpost.com/tag/ownership/">Ownership</a> fulfilment</strong></p>
<p><a href="http://bible.postedpost.com/tag/ownership/">Ownership</a> fulfilment is a sweetener for the measured enterprise to encourage the unconditional handover of <a href="http://bible.postedpost.com/tag/economic/">economic</a> benefits to <a href="http://bible.postedpost.com/tag/black-people/"><strong>Black people</strong></a>. It is achieved when <a href="http://bible.postedpost.com/tag/black/">Black</a> shareholders are released from all third-<a href="http://bible.postedpost.com/tag/party/">party</a> legal or commercial obligations that withhold, defer or restrict enjoyment of rights associated with <a href="http://bible.postedpost.com/tag/shareholding/">shareholding</a>. Examples of these restrictions or obligations are pledges and cessions. The measured entity may claim one point once:</p>
<p>All obligations originating from financing received to obtain the equity <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> have been released in entirety, and</p>
<ul>
<li>the full nine <a href="http://bible.postedpost.com/tag/points/">points</a> for <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a> have been obtained.</li>
</ul>
<h3><a href="http://bible.postedpost.com/tag/bonus-points/"><strong>Bonus Points</strong></a></h3>
<p>The <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> <a href="http://bible.postedpost.com/tag/bonus-points/"><strong>bonus points</strong></a> are used to encourage the <a href="http://bible.postedpost.com/tag/participation-of-black/"><big>participation of Black</big></a> <a href="http://bible.postedpost.com/tag/women/">women</a> and broad-based groups in <a href="http://bible.postedpost.com/tag/ownership/">ownership</a>. If <a href="http://bible.postedpost.com/tag/black-women/"><strong>Black women</strong></a> represent 10% of total <a href="http://bible.postedpost.com/tag/ownership/">ownership</a>, then two <a href="http://bible.postedpost.com/tag/points/">points</a> are awarded on the <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> <a href="http://bible.postedpost.com/tag/scorecard/">scorecard</a>.</p>
<p>If <a href="http://bible.postedpost.com/tag/black-people/"><strong>Black people</strong></a> participate in <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> through a broad-based <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> scheme, employee <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> scheme or a cooperative for a minimum of 10% of the total <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> of the business, then a single <a href="http://bible.postedpost.com/tag/bonus/">bonus</a> point is available to the business.</p>
<p><a href="http://bible.postedpost.com/tag/bonus-points/"><strong>Bonus points</strong></a> are <a href="http://bible.postedpost.com/tag/calculated/">calculated</a> on <a href="http://bible.postedpost.com/tag/economic-interest/"><strong>economic interest</strong></a> held by <a href="http://bible.postedpost.com/tag/black-women/"><strong>Black women</strong></a> or priority groups as discussed above. These indicators may not be <a href="http://bible.postedpost.com/tag/calculated/">calculated</a> using the <a href="http://bible.postedpost.com/tag/modified-flow-through-principle/"><big>modified flow-through principle</big></a>. The <a href="http://bible.postedpost.com/tag/black/">Black</a> <a href="http://bible.postedpost.com/tag/participation/">participation</a> may only be <a href="http://bible.postedpost.com/tag/calculated/">calculated</a> using the <a href="http://bible.postedpost.com/tag/flow-through-principle/"><strong>flow-through principle</strong></a>.</p>
<p>I would like to use this opportunity to address the matter of <a href="http://bible.postedpost.com/tag/black-women/"><strong>Black women</strong></a>. Although the <a href="http://bible.postedpost.com/tag/participation-of-black/"><big>participation of Black</big></a> <a href="http://bible.postedpost.com/tag/women/">women</a> in QSEs is only encouraged through <a href="http://bible.postedpost.com/tag/bonus-points/"><strong>bonus points</strong></a>, businesses that expect to cross the QSE threshold need to consider that there is a specific indicator for <a href="http://bible.postedpost.com/tag/black-women/"><strong>Black women</strong></a> <a href="http://bible.postedpost.com/tag/participation/">participation</a> in the generic <a href="http://bible.postedpost.com/tag/scorecard/">scorecard</a>. Furthermore, the <a href="http://bible.postedpost.com/tag/modified-flow-through-principle/"><big>modified flow-through principle</big></a> does not apply to the <a href="http://bible.postedpost.com/tag/black-women/"><strong>Black women</strong></a> indicator in the generic <a href="http://bible.postedpost.com/tag/scorecard/">scorecard</a>. Having 10% <a href="http://bible.postedpost.com/tag/black-women/"><strong>Black women</strong></a> <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> in an enterprise, <a href="http://bible.postedpost.com/tag/calculated/">calculated</a> using the <a href="http://bible.postedpost.com/tag/flow-through-principle/"><strong>flow-through principle</strong></a>, will <a href="http://bible.postedpost.com/tag/result/">result</a> in a significantly higher <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> score where the <a href="http://bible.postedpost.com/tag/modified-flow-through-principle/"><big>modified flow-through principle</big></a> is used to facilitate finance for the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/25/bee-party-debt-free-ownership-money-under-name-continued/feed/</wfw:commentRss>
	<dc:id>253</dc:id>	</item>
		<item>
		<title>BEE Party&#8217;s Debt-free Ownership: the Money is under your name</title>
		<link>http://beepartner.com/2009/05/25/bee-party-s-debt-free-ownership-the-money-is-under-your-name/</link>
		<comments>http://beepartner.com/2009/05/25/bee-party-s-debt-free-ownership-the-money-is-under-your-name/#comments</comments>
		<pubDate>Mon, 25 May 2009 03:43:02 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Black Economic Empowerment]]></category>

		<category><![CDATA[Economy]]></category>

		<category><![CDATA[Enterprise]]></category>

		<category><![CDATA[Finance]]></category>

		<category><![CDATA[Fund]]></category>

		<category><![CDATA[Investment]]></category>

		<category><![CDATA[Stocks]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=249</guid>
		<description><![CDATA[BEE Enterprise Net value
The net value is determined by calculating the current market value of the asset in relation to the current market value of the acquisition debt. Where the value of the asset increases in relation to the debt, the net value points will increase. Where the debt is reduced in relation to the [...]]]></description>
			<content:encoded><![CDATA[<h3><a href="http://bible.postedpost.com/tag/bee/">BEE</a> Enterprise <a href="http://bible.postedpost.com/tag/net-value/"><strong>Net value</strong></a></h3>
<p>The <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a> is determined by calculating the <a href="http://bible.postedpost.com/tag/current-market-value/"><big>current market value</big></a> of the <a href="http://bible.postedpost.com/tag/asset/">asset</a> in <a href="http://bible.postedpost.com/tag/relation/">relation</a> to the <a href="http://bible.postedpost.com/tag/current-market-value/"><big>current market value</big></a> of the acquisition <a href="http://bible.postedpost.com/tag/debt/">debt</a>. Where the <a href="http://bible.postedpost.com/tag/value/">value</a> of the <a href="http://bible.postedpost.com/tag/asset/">asset</a> increases in <a href="http://bible.postedpost.com/tag/relation/">relation</a> to the <a href="http://bible.postedpost.com/tag/debt/">debt</a>, the <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a> <a href="http://bible.postedpost.com/tag/points/">points</a> will increase. <span id="more-249"></span>Where the <a href="http://bible.postedpost.com/tag/debt/">debt</a> is reduced in <a href="http://bible.postedpost.com/tag/relation/">relation</a> to the <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a> of the <a href="http://bible.postedpost.com/tag/business/">business</a>, then the <a href="http://bible.postedpost.com/tag/points/">points</a> will also increase to reflect the increase in the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s <a href="http://bible.postedpost.com/tag/net/">net</a> <a href="http://bible.postedpost.com/tag/asset/">asset</a> <a href="http://bible.postedpost.com/tag/value/">value</a>. On the other hand, where the <a href="http://bible.postedpost.com/tag/value/">value</a> of the <a href="http://bible.postedpost.com/tag/asset/">asset</a> decreases in <a href="http://bible.postedpost.com/tag/relation/">relation</a> to the capital <a href="http://bible.postedpost.com/tag/value/">value</a> of the <a href="http://bible.postedpost.com/tag/debt/">debt</a>, <a href="http://bible.postedpost.com/tag/result/">resulting</a> from increased <a href="http://bible.postedpost.com/tag/debt/">debt</a> or decreased <a href="http://bible.postedpost.com/tag/asset/">asset</a> <a href="http://bible.postedpost.com/tag/value/">value</a>, the associated <a href="http://bible.postedpost.com/tag/points/">points</a> will decrease.</p>
<p>The challenge in the QSE environment is to <a href="http://bible.postedpost.com/tag/obtain/">obtain</a> the <a href="http://bible.postedpost.com/tag/current-market-value/"><big>current market value</big></a> of a <a href="http://bible.postedpost.com/tag/business/">business</a> every year, although this is an expensive exercise. The Codes do not require the <a href="http://bible.postedpost.com/tag/business/">business</a> to <a href="http://bible.postedpost.com/tag/obtain/">obtain</a> an annual external <a href="http://bible.postedpost.com/tag/valuation/">valuation</a>. As long as the <a href="http://bible.postedpost.com/tag/valuation/">valuation</a> is based on an acceptable <a href="http://bible.postedpost.com/tag/measurement/">measurement</a> standard such as price earnings or discounted cash flow, and can be substantiated, the verification agency will accept the <a href="http://bible.postedpost.com/tag/valuation/">valuation</a>. The best way to address the issue of <a href="http://bible.postedpost.com/tag/obtain/">obtaining</a> a <a href="http://bible.postedpost.com/tag/current-market-value/"><big>current market value</big></a> is to use an acceptable <a href="http://bible.postedpost.com/tag/valuation/">valuation</a> <a href="http://bible.postedpost.com/tag/formula/">formula</a>, which most accountants can provide, and to use that <a href="http://bible.postedpost.com/tag/formula/">formula</a> annually.</p>
<p><a href="http://bible.postedpost.com/"><img src="http://bible.postedpost.com/files/2008/07/bible.gif" border="0" alt="Bible Stories" width="200" height="100" align="right" /></a></p>
<p><strong>Measuring <a href="http://bible.postedpost.com/tag/bee/">BEE</a> <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a></strong></p>
<p>The Codes present fairly complicated <a href="http://bible.postedpost.com/tag/formula/">formulas</a> for measuring <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a>. I have broken down the components to make them easier to understand. When trying to understand this <a href="http://bible.postedpost.com/tag/measurement/">measurement</a> follow this line of thought: the <a href="http://bible.postedpost.com/tag/deemed-net-value/"><big>deemed net value</big></a> calculates the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s <a href="http://bible.postedpost.com/tag/debt-free-ownership/"><strong>debt-free ownership</strong></a> as a <a href="http://bible.postedpost.com/tag/percentage/">percentage</a> of the <a href="http://bible.postedpost.com/tag/current-value/"><strong>current value</strong></a> of the <a href="http://bible.postedpost.com/tag/business/">business</a>. This is divided by the targeted <a href="http://bible.postedpost.com/tag/debt-free-ownership/"><strong>debt-free ownership</strong></a> as calculated in <a href="http://bible.postedpost.com/tag/formula/">Formula</a> A and multiplied by the allocated nine <a href="http://bible.postedpost.com/tag/points/">points</a> to <a href="http://bible.postedpost.com/tag/obtain/">obtain</a> a pro-rata score. Another <a href="http://bible.postedpost.com/tag/formula/">formula</a>, <a href="http://bible.postedpost.com/tag/formula/">Formula</a> B, is applied to limit the score where the targeted <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> of 25% is not achieved.</p>
<p>The objective is to measure and reward <a href="http://bible.postedpost.com/tag/debt-free-ownership/"><strong>debt-free ownership</strong></a> held by the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>.</p>
<p><strong><a href="http://bible.postedpost.com/tag/deemed-net-value/"><big>Deemed net value</big></a> is:</strong></p>
<ul>
<li>the <a href="http://bible.postedpost.com/tag/current-value/"><strong>current value</strong></a> of the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s shareholding in the <a href="http://bible.postedpost.com/tag/business/">business</a></li>
<li>less any outstanding <a href="http://bible.postedpost.com/tag/debt-originating/"><strong>debt originating</strong></a> from purchasing that shareholding</li>
<li>as a <a href="http://bible.postedpost.com/tag/percentage/">percentage</a> of the <a href="http://bible.postedpost.com/tag/current-value/"><strong>current value</strong></a> of the <a href="http://bible.postedpost.com/tag/business/">business</a>.</li>
</ul>
<p>It is best described as the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s <a href="http://bible.postedpost.com/tag/debt-free-ownership/"><strong>debt-free ownership</strong></a> as a <a href="http://bible.postedpost.com/tag/percentage/">percentage</a> of the <a href="http://bible.postedpost.com/tag/current-value/"><strong>current value</strong></a> of the <a href="http://bible.postedpost.com/tag/business/">business</a> or the liquidation <a href="http://bible.postedpost.com/tag/value/">value</a> of the <a href="http://bible.postedpost.com/tag/bee-party/"><strong>BEE party</strong></a>&#8217;s participation as a <a href="http://bible.postedpost.com/tag/percentage/">percentage</a> of the <a href="http://bible.postedpost.com/tag/current-value/"><strong>current value</strong></a> of the <a href="http://bible.postedpost.com/tag/business/">business</a>.</p>
<p>Note: The <a href="http://bible.postedpost.com/tag/debt/">debt</a> referred to throughout the <a href="http://bible.postedpost.com/tag/calculation-of-net/"><big>calculation of net</big></a> <a href="http://bible.postedpost.com/tag/value/">value</a> is the <a href="http://bible.postedpost.com/tag/debt-originating/"><strong>debt originating</strong></a> from the purchase of the shares only. <a href="http://bible.postedpost.com/tag/debt-originating/"><strong>Debt originating</strong></a> from borrowing against the <a href="http://bible.postedpost.com/tag/value/">value</a> of the shares after purchase is not included in the <a href="http://bible.postedpost.com/tag/calculation-of-net/"><big>calculation of net</big></a> <a href="http://bible.postedpost.com/tag/value/">value</a>.</p>
<p align="center"><span style="text-decoration: underline"><a href="http://bible.postedpost.com/tag/market-value/"><strong>Market value</strong></a> of the equity <a href="http://bible.postedpost.com/tag/instrument/">instrument</a> — Capital balance of the acquisition loan and/or other <a href="http://bible.postedpost.com/tag/instrument/">instrument</a><br />
</span><a href="http://bible.postedpost.com/tag/market-value/"><strong>Market value</strong></a> of the measured enterprise</p>
<p>A= <em>(B -C) </em>/ C</p>
<p><em>A = </em>the <a href="http://bible.postedpost.com/tag/net-value/"><strong>net value</strong></a> to be included in <a href="http://bible.postedpost.com/tag/formula/">Formula</a> A.</p>
<p><a href="http://bible.postedpost.com/tag/step/">Step</a> 1 Calculate <em>B, </em>the <a href="http://bible.postedpost.com/tag/value/">value</a> of the equity <a href="http://bible.postedpost.com/tag/instrument/">instrument</a> held by Black people on the <a href="http://bible.postedpost.com/tag/date-of-measurement/"><big>date of measurement</big></a>.</p>
<p><a href="http://bible.postedpost.com/tag/step/">Step</a> 2 Calculate <em>C, </em>the carrying <a href="http://bible.postedpost.com/tag/value/">value</a> of third-<a href="http://bible.postedpost.com/tag/party/">party</a> rights against Black people&#8217;s economic interest as a <a href="http://bible.postedpost.com/tag/result/">result</a> of financing the acquisition of the <a href="http://bible.postedpost.com/tag/instrument/">instrument</a>.</p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 3 </strong>Subtract the <a href="http://bible.postedpost.com/tag/result-of-step/"><big>result of Step</big></a> 2 from that of <a href="http://bible.postedpost.com/tag/step/">Step</a> 1 (the <a href="http://bible.postedpost.com/tag/debt/">debt</a>-free Black <a href="http://bible.postedpost.com/tag/ownership/">ownership</a>).</p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 4 </strong>Calculate <em>D, </em>the <a href="http://bible.postedpost.com/tag/current-value/"><strong>current value</strong></a> of the measured enterprise on the <a href="http://bible.postedpost.com/tag/date-of-measurement/"><big>date of measurement</big></a>.</p>
<p><strong><a href="http://bible.postedpost.com/tag/step/">Step</a> 5 </strong>Divide the <a href="http://bible.postedpost.com/tag/result-of-step/"><big>result of Step</big></a> 3 by the <a href="http://bible.postedpost.com/tag/result-of-step/"><big>result of Step</big></a> 4 to <a href="http://bible.postedpost.com/tag/obtain/">obtain</a> the <a href="http://bible.postedpost.com/tag/deemed-net-value/"><big>deemed net value</big></a> (which is the <a href="http://bible.postedpost.com/tag/debt-free-ownership/"><strong>debt-free ownership</strong></a> as a <a href="http://bible.postedpost.com/tag/percentage/">percentage</a> of the <a href="http://bible.postedpost.com/tag/value/">value</a> of the <a href="http://bible.postedpost.com/tag/business/">business</a>).</p>
<p>to be continued</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/25/bee-party-s-debt-free-ownership-the-money-is-under-your-name/feed/</wfw:commentRss>
	<dc:id>249</dc:id>	</item>
		<item>
		<title>Bee Direct Leadership (Fund Controller)</title>
		<link>http://beepartner.com/2009/05/25/bee-direct-leadership-fund-controller/</link>
		<comments>http://beepartner.com/2009/05/25/bee-direct-leadership-fund-controller/#comments</comments>
		<pubDate>Mon, 25 May 2009 03:28:45 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Africa]]></category>

		<category><![CDATA[Black Economic Empowerment]]></category>

		<category><![CDATA[Documents]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=246</guid>
		<description><![CDATA[Direct ownership represents an identifiable natural person who holds an identifiable ownership stake with a right to participate in economic benefits and the right to exercise influence over the business in line with the voting rights owned. In terms of transformation, direct ownership is the first prize. Black beneficiaries, who may be hidden behind multiple [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://bible.postedpost.com/tag/direct-ownership/"><strong>Direct ownership</strong></a> represents an identifiable natural person who holds an identifiable <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> stake with a right to participate in economic benefits and the right to exercise influence over the business in line with the voting rights owned. In terms of transformation, <a href="http://bible.postedpost.com/tag/direct-ownership/"><strong>direct ownership</strong></a> is the first prize. <span id="more-246"></span>Black <a href="http://bible.postedpost.com/tag/beneficiaries/">beneficiaries</a>, who may be hidden behind multiple layers of corporate structure, are identifiable for measurement purposes and, more importantly, they know exactly what stake they have in the <a href="http://bible.postedpost.com/tag/measured-entity/"><strong>measured entity</strong></a> and what their rights are.</p>
<ul>
<li><a href="http://bible.postedpost.com/tag/direct-ownership/"><strong>Direct ownership</strong></a> promotes an active interest in the <a href="http://bible.postedpost.com/tag/measured-entity/"><strong>measured entity</strong></a> by the Black participant, resulting in his or her inclusion in the mainstream economy.</li>
<li></li>
<li>The key questions when determining <a href="http://bible.postedpost.com/tag/direct-ownership/"><strong>direct ownership</strong></a> are as follows:</li>
<li>Does the benefit accrue directly to natural persons?</li>
<li>Are those persons able to <a href="http://bible.postedpost.com/tag/direct/">direct</a> the decision-making processes relative to the <a href="http://bible.postedpost.com/tag/equity/">equity</a> they hold by exercising their voting rights?</li>
<li>Does the <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> give stakeholders the opportunity to influence the decision-making processes in the enterprise?</li>
<li>Does the owner enjoy the corresponding risk and reward of <a href="http://bible.postedpost.com/tag/ownership/">ownership</a>?</li>
<li>Who holds the risk?</li>
<li><a href="http://bible.postedpost.com/tag/direct-ownership/"><strong>Direct ownership</strong></a> should present a clear answer to each of these questions regardless of the number of legal entities in the <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> structure between the natural person and the <a href="http://bible.postedpost.com/tag/measured-entity/"><strong>measured entity</strong></a>.</li>
</ul>
<h3><strong>Bee <a href="http://bible.postedpost.com/tag/indirect/">Indirect</a> Leadership (non-fund player)</strong></h3>
<p><a href="http://bible.postedpost.com/"><img src="http://bible.postedpost.com/files/2008/07/bible.gif" border="0" alt="Bible Stories" width="200" height="100" align="right" /></a></p>
<p><a href="http://bible.postedpost.com/tag/indirect-ownership/"><strong>Indirect ownership</strong></a> is <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> of <a href="http://bible.postedpost.com/tag/equity/">equity</a> instruments held through a third-party <a href="http://bible.postedpost.com/tag/intermediary/">intermediary</a>. Legally, the <a href="http://bible.postedpost.com/tag/funds/">funds</a> that the third-party <a href="http://bible.postedpost.com/tag/intermediary/">intermediary</a> manages belong to the <a href="http://bible.postedpost.com/tag/beneficiaries/">beneficiaries</a> but they have little active involvement in controlling such <a href="http://bible.postedpost.com/tag/funds/">funds</a>.</p>
<p>The function of the <a href="http://bible.postedpost.com/tag/intermediary/">intermediary</a> is to manage the <a href="http://bible.postedpost.com/tag/funds/">funds</a> in a manner that maximises the return according to the risk mandate granted by the <a href="http://bible.postedpost.com/tag/beneficiaries/">beneficiaries</a>. An auxiliary function of the <a href="http://bible.postedpost.com/tag/intermediary/">intermediary</a> is to vote on the <a href="http://bible.postedpost.com/tag/equity/">equity</a> instruments if there are votes attached to those instruments.</p>
<p><strong><a href="http://bible.postedpost.com/tag/indirect-ownership/"><strong>Indirect ownership</strong></a> has many faces:</strong></p>
<ul>
<li>Mandated investments such as pension <a href="http://bible.postedpost.com/tag/funds/">funds</a> and long-term insurance products where the beneficiary hands over <a href="http://bible.postedpost.com/tag/funds/">funds</a> to a third- party <a href="http://bible.postedpost.com/tag/intermediary/">intermediary</a> to manage</li>
<li><a href="http://bible.postedpost.com/tag/broad-based-ownership/"><strong>Broad-based ownership</strong></a> such as:</li>
<li>public benefit organisations that do not specify individual <a href="http://bible.postedpost.com/tag/beneficiaries/">beneficiaries</a> (for example, Kagiso Trust)</li>
<li><a href="http://bible.postedpost.com/tag/employee-ownership-schemes/"><big>employee ownership schemes</big></a></li>
<li><a href="http://bible.postedpost.com/tag/broad-based-ownership/"><strong>broad-based ownership</strong></a> schemes that are generally set up by<br />
an <a href="http://bible.postedpost.com/tag/intermediary/">intermediary</a> for the benefit of a specific group of people</li>
<li>Government <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> that also represents a form of <a href="http://bible.postedpost.com/tag/indirect-ownership/"><strong>indirect ownership</strong></a></li>
<li>Other <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> such as private <a href="http://bible.postedpost.com/tag/equity/">equity</a>, union <a href="http://bible.postedpost.com/tag/funds/">funds</a> and stokvels.</li>
</ul>
<p>The permutations of <a href="http://bible.postedpost.com/tag/indirect-ownership/"><strong>indirect ownership</strong></a> are a minefield when determining <a href="http://bible.postedpost.com/tag/ownership/">ownership</a> measurement. In <a href="http://bible.postedpost.com/tag/indirect-ownership/"><strong>indirect ownership</strong></a> there is often an element of <a href="http://bible.postedpost.com/tag/direct-ownership/"><strong>direct ownership</strong></a> that needs to be extracted and <a href="http://bible.postedpost.com/tag/measured/">measured</a> separately from the <a href="http://bible.postedpost.com/tag/indirect/">indirect</a> holding. In the QSE environment most of the <a href="http://bible.postedpost.com/tag/indirect/">indirect</a> complications are unnecessary in this text. The only issues that will surface repeatedly are <a href="http://bible.postedpost.com/tag/broad-based-ownership/"><strong>broad-based ownership</strong></a> and <a href="http://bible.postedpost.com/tag/employee-ownership-schemes/"><big>employee ownership schemes</big></a>.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/25/bee-direct-leadership-fund-controller/feed/</wfw:commentRss>
	<dc:id>246</dc:id>	</item>
		<item>
		<title>General broad-based BEE ownership schemes</title>
		<link>http://beepartner.com/2009/05/15/general-broad-based-bee-ownership-schemes/</link>
		<comments>http://beepartner.com/2009/05/15/general-broad-based-bee-ownership-schemes/#comments</comments>
		<pubDate>Fri, 15 May 2009 01:56:24 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Africa]]></category>

		<category><![CDATA[Black Economic Empowerment]]></category>

		<category><![CDATA[Economy]]></category>

		<category><![CDATA[Fund]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=243</guid>
		<description><![CDATA[The general broad-based ownership scheme will only receive recognition as Black owned where it satisfies the conditions stated in Section 1 Annexure 100B of Statement 100, which are as follows:

50% of the fiduciaries must be appointed by civil society.
50% of the fiduciaries of the scheme must be independent of the scheme, having no employment or [...]]]></description>
			<content:encoded><![CDATA[<p>The <a href="http://beepartner.com/tag/general-broad-based-ownership/"><big>general broad-based ownership</big></a> <a href="http://beepartner.com/tag/scheme/">scheme</a> will only receive recognition as <a href="http://beepartner.com/tag/black-owned/"><strong>Black owned</strong></a> where it satisfies the conditions stated in Section 1 Annexure 100B of Statement 100, which are as follows:<span id="more-243"></span></p>
<ul>
<li>50% of the <a href="http://beepartner.com/tag/fiduciaries/">fiduciaries</a> must be appointed by civil society.</li>
<li>50% of the <a href="http://beepartner.com/tag/fiduciaries/">fiduciaries</a> of the <a href="http://beepartner.com/tag/scheme/">scheme</a> must be <a href="http://beepartner.com/tag/independent/">independent</a> of the <a href="http://beepartner.com/tag/scheme/">scheme</a>, having no employment or beneficial <a href="http://beepartner.com/tag/interest/">interest</a> in the <a href="http://beepartner.com/tag/scheme/">scheme</a>.</li>
<li>50% of the <a href="http://beepartner.com/tag/fiduciaries/">fiduciaries</a> must be <a href="http://beepartner.com/tag/black/">Black</a> <a href="http://beepartner.com/tag/people/">people</a> and at least 25% <a href="http://beepartner.com/tag/black/">Black</a> women.</li>
<li>The chairperson of the <a href="http://beepartner.com/tag/scheme/">scheme</a> must be <a href="http://beepartner.com/tag/independent/">independent</a> of the <a href="http://beepartner.com/tag/scheme/">scheme</a> and be appointed by the <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a> of the <a href="http://beepartner.com/tag/scheme/">scheme</a>.</li>
<li> The management fees of the <a href="http://beepartner.com/tag/scheme/">scheme</a> must not exceed 15% of total <a href="http://beepartner.com/category/economy/">economic</a> <a href="http://beepartner.com/tag/interest/">interest</a> accruing to the trust. 85% of the benefits received by the <a href="http://beepartner.com/category/fund/">fund</a> must go to the <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a>.</li>
</ul>
<p>The <a href="http://beepartner.com/tag/scheme/">scheme</a>&#8217;s constitution must state how it will deal with <a href="http://beepartner.com/category/economy/">economic</a> <a href="http://beepartner.com/tag/interest/">interest</a> received, what portion will be reserved for future use and what portion will be distributed. On termination or winding up of the <a href="http://beepartner.com/tag/scheme/">scheme</a>, all <a href="http://beepartner.com/category/economy/">economic</a> <a href="http://beepartner.com/tag/interest/">interest</a> must be transferred to the <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a> or an entity with similar objectives.</p>
<p><a href="http://beepartner.com/"><img src="http://beepartner.com/files/2008/04/beepartner.gif" border="0" alt="BEEPartner SA Economy" width="190" height="90" align="right" /></a></p>
<p>When simplifying the <a href="http://beepartner.com/tag/codes/">Codes</a> some areas were not addressed. While not specified in the <a href="http://beepartner.com/tag/codes/">Codes</a>, the following comments should be considered to create a stronger <a href="http://beepartner.com/tag/scheme/">scheme</a> that protects the <a href="http://beepartner.com/tag/interest/">interests</a> of the <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a>.</p>
<p>From a practical perspective, entities should assume that the information above must be written into the constitution of the <a href="http://beepartner.com/tag/scheme/">scheme</a> before it may receive recognition as a <a href="http://beepartner.com/tag/general-broad-based-ownership/"><big>general broad-based ownership</big></a> <a href="http://beepartner.com/tag/scheme/">scheme</a>.</p>
<p>Interestingly, the <a href="http://beepartner.com/tag/codes/">Codes</a> fail to give guidance on the number of <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a> the <a href="http://beepartner.com/tag/scheme/">scheme</a> should have to make it <a href="http://beepartner.com/tag/broad-based/">broad-based</a>. While it is not written into the <a href="http://beepartner.com/tag/codes/">Codes</a>, a <a href="http://beepartner.com/tag/broad-based/">broad-based</a> <a href="http://beepartner.com/tag/scheme/">scheme</a> is generally considered to benefit 50 or more outside <a href="http://beepartner.com/tag/people/">people</a> who are not employees. For employee <a href="http://beepartner.com/tag/scheme/">schemes</a> the number of participating employees does not matter. There are certain tax advantages attached to <a href="http://beepartner.com/"><strong>BEE</strong></a> employee <a href="http://beepartner.com/tag/scheme/">schemes</a> but they are only granted under certain conditions.</p>
<p>The <a href="http://beepartner.com/tag/scheme/">scheme</a> should contain a detailed account of the <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a> using the flow-through principle to establish that the <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a> of the <a href="http://beepartner.com/tag/scheme/">scheme</a> are <a href="http://beepartner.com/tag/black/">Black</a> <a href="http://beepartner.com/tag/people/">people</a> as defined in the <a href="http://beepartner.com/tag/codes/">Codes</a>.</p>
<p><a href="http://beepartner.com/tag/independent/">Independent</a> <a href="http://beepartner.com/tag/fiduciaries/">fiduciaries</a> should be <a href="http://beepartner.com/tag/independent/">independent</a> of the <a href="http://beepartner.com/tag/scheme/">scheme</a>, of the company who appoints the <a href="http://beepartner.com/tag/fiduciaries/">fiduciaries</a>, of the company who manages the <a href="http://beepartner.com/tag/scheme/">scheme</a> and of the <a href="http://beepartner.com/tag/people/">people</a> who appoint them.</p>
<p>If a <a href="http://beepartner.com/tag/broad-based-ownership-scheme/"><big>broad-based ownership scheme</big></a> is not recognised as a <a href="http://beepartner.com/tag/general-broad-based-ownership/"><big>general broad-based ownership</big></a> <a href="http://beepartner.com/tag/scheme/">scheme</a>, as discussed above, the business may not include it in <a href="http://beepartner.com/tag/ownership/">ownership</a> as <a href="http://beepartner.com/tag/black-owned/"><strong>Black owned</strong></a>, unless it qualifies as an employee <a href="http://beepartner.com/tag/ownership-scheme/"><strong>ownership scheme</strong></a>. If the <a href="http://beepartner.com/tag/broad-based-ownership-scheme/"><big>broad-based ownership scheme</big></a> does not qualify for recognition, then it will be included as non-<a href="http://beepartner.com/tag/black/">Black</a> <a href="http://beepartner.com/tag/owned-when-measuring/"><big>owned when measuring</big></a> <a href="http://beepartner.com/tag/ownership/">ownership</a>. The qualification is strict to limit fronting operations from diluting benefits to the intended <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a>. It is critical for measured entities to do necessary due diligence investigations to establish whether the intended <a href="http://beepartner.com/"><strong>BEE</strong></a> party is recognisable as <a href="http://beepartner.com/tag/black/">Black</a> <a href="http://beepartner.com/tag/owned-when-measuring/"><big>owned when measuring</big></a> <a href="http://beepartner.com/tag/ownership/">ownership</a>.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/15/general-broad-based-bee-ownership-schemes/feed/</wfw:commentRss>
	<dc:id>243</dc:id>	</item>
		<item>
		<title>BEE Special broad-based ownership schemes</title>
		<link>http://beepartner.com/2009/05/15/bee-special-broad-based-ownership-schemes/</link>
		<comments>http://beepartner.com/2009/05/15/bee-special-broad-based-ownership-schemes/#comments</comments>
		<pubDate>Fri, 15 May 2009 01:45:30 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Economy]]></category>

		<category><![CDATA[Enterprise]]></category>

		<category><![CDATA[Scorecard]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=240</guid>
		<description><![CDATA[A broad-based group that meets the definition of a general broad-based ownership scheme, but wants recognition as a special broad-based ownership scheme may do so where it meets the additional criteria as per Section 5 of Annexure 100B of Statement 100. The primary difference between a special and general broad-based ownership scheme is that there [...]]]></description>
			<content:encoded><![CDATA[<p>A <a href="http://beepartner.com/tag/broad-based/">broad-based</a> group that meets the definition of a <a href="http://beepartner.com/tag/general-broad-based-ownership/"><big>general broad-based ownership</big></a> <a href="http://beepartner.com/tag/scheme/">scheme</a>, but wants recognition as a <a href="http://beepartner.com/tag/special/">special</a> <a href="http://beepartner.com/tag/broad-based-ownership-scheme/"><big>broad-based ownership scheme</big></a> may do so where it meets the <a href="http://beepartner.com/tag/additional-criteria/"><strong>additional criteria</strong></a> as per Section 5 of Annexure 100B of Statement 100. The primary difference between a <a href="http://beepartner.com/tag/special/">special</a> and <a href="http://beepartner.com/tag/general-broad-based-ownership/"><big>general broad-based ownership</big></a> <a href="http://beepartner.com/tag/scheme/">scheme</a> is that there is no limitation on recognition of percentage owned by the <a href="http://beepartner.com/tag/special-scheme/"><strong>special scheme</strong></a>.<span id="more-240"></span></p>
<p>A measured business may realise 100% of <a href="http://beepartner.com/tag/ownership/">ownership</a> <a href="http://beepartner.com/tag/points/">points</a> where 25% is owned by a <a href="http://beepartner.com/tag/special-scheme/"><strong>special scheme</strong></a>. They were created in recognition of established <a href="http://beepartner.com/tag/broad-based/">broad-based</a> entities that have a <a href="http://beepartner.com/tag/track-record/"><strong>track record</strong></a> of achieving the objectives of <a href="http://beepartner.com/"><strong>BEE</strong></a> <a href="http://beepartner.com/tag/ownership/">ownership</a>.</p>
<p><a href="http://beepartner.com/"><img src="http://beepartner.com/files/2008/04/beepartner.gif" border="0" alt="BEEPartner SA Economy" width="190" height="90" align="right" /></a></p>
<p>Businesses wanting to enter <a href="http://beepartner.com/tag/ownership/">ownership</a> deals with a <a href="http://beepartner.com/tag/broad-based-scheme/"><strong>broad-based scheme</strong></a> must ensure they qualify or are capable of qualifying as a <a href="http://beepartner.com/tag/special-scheme/"><strong>special scheme</strong></a> if the intention is to sell a full <a href="http://beepartner.com/"><strong>BEE</strong></a> participation to that <a href="http://beepartner.com/tag/scheme/">scheme</a>.</p>
<p>The <a href="http://beepartner.com/tag/additional-criteria/">additional criteria</a> are:</p>
<ul>
<li>a <a href="http://beepartner.com/tag/track-record/"><strong>track record</strong></a> of operations of a <a href="http://beepartner.com/tag/broad-based-ownership-scheme/"><big>broad-based ownership scheme</big></a>, or in the absence of such a <a href="http://beepartner.com/tag/record/">record</a>, evidence of full operational capacity to operate as such, and</li>
<li>the operational capacity must be evidenced by suitably qualified and experienced staff, professional advisors, operating premises and all the requirements for operating a business.</li>
</ul>
<p>Unfortunately, the <a href="http://beepartner.com/tag/additional-criteria/"><strong>additional criteria</strong></a> supplied by the Codes contain no real distinction and are easily circumvented. The <a href="http://beepartner.com/tag/track-record/"><strong>track record</strong></a> does not mention length of service and an entity wishing to front can obtain offices and staff with relative ease.</p>
<p>Entities wanting to take on <a href="http://beepartner.com/tag/broad-based-ownership-scheme/"><big>broad-based ownership schemes</big></a> as <a href="http://beepartner.com/"><strong>BEE</strong></a> partners may wish to insist on a complete review of the following <a href="http://beepartner.com/tag/criteria/">criteria</a> to ensure that they acquire a partner of substance that will implement the objectives of <a href="http://beepartner.com/">BEE</a>:</p>
<ul>
<li>historical audited financial information and accounts that provide insight into the benefits that have been distributed to intended <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a></li>
</ul>
<ul>
<li>A detailed breakdown of the management fees and the benefits accruing to <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a></li>
<li>A report on the nature of the projects undertaken by the <a href="http://beepartner.com/tag/scheme/">scheme</a> and the alignment of those projects with the provisions contained in the Socio-<a href="http://beepartner.com/category/economy/">Economic</a> and <a href="http://beepartner.com/category/enterprise/">Enterprise</a> Development Code</li>
<li>A report on the manner in which <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a> are identified and the geographic spread of benefit implementation</li>
<li>The names and details of senior employees of the <a href="http://beepartner.com/tag/scheme/">scheme</a></li>
<li>An explanation of the services provided by the <a href="http://beepartner.com/tag/scheme/">scheme</a>&#8217;s administrators.</li>
</ul>
<p>A <a href="http://beepartner.com/tag/broad-based-scheme/"><strong>broad-based scheme</strong></a> may include the <a href="http://beepartner.com/tag/beneficiaries/">beneficiaries</a> representing <a href="http://beepartner.com/tag/black/">Black</a> women, <a href="http://beepartner.com/tag/black-designated-groups/"><big>Black designated groups</big></a> or any other <a href="http://beepartner.com/tag/black/">Black</a> people. The measured entity will receive <a href="http://beepartner.com/tag/points/">points</a> for <a href="http://beepartner.com/tag/ownership/">ownership</a> by priority groups through bonus <a href="http://beepartner.com/tag/points/">points</a>. For example, the <a href="http://beepartner.com/tag/broad-based-scheme/"><strong>broad-based scheme</strong></a> may receive bonus <a href="http://beepartner.com/tag/points/">points</a> for including <a href="http://beepartner.com/tag/black/">Black</a> women and/or <a href="http://beepartner.com/tag/black-designated-groups/"><big>Black designated groups</big></a>, who, through the <a href="http://beepartner.com/tag/scheme/">scheme</a>, participate in 10% of the total <a href="http://beepartner.com/tag/ownership/">ownership</a>. The various indicators in the <a href="http://beepartner.com/tag/ownership/">ownership</a> <a href="http://beepartner.com/category/scorecard/">scorecard</a> are entitled to recognise this split as long as the claim is supported by evidence provided by the <a href="http://beepartner.com/tag/broad-based/">broad-based</a> group.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/15/bee-special-broad-based-ownership-schemes/feed/</wfw:commentRss>
	<dc:id>240</dc:id>	</item>
		<item>
		<title>2010 African Travel Bush Etiquette continued</title>
		<link>http://beepartner.com/2009/05/08/2010-african-travel-bush-etiquette-continued/</link>
		<comments>http://beepartner.com/2009/05/08/2010-african-travel-bush-etiquette-continued/#comments</comments>
		<pubDate>Fri, 08 May 2009 18:07:50 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Africa]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=236</guid>
		<description><![CDATA[THE DON&#8217;TS

Don&#8217;t camp near a water source. Camp at least three kilometres away.
Don&#8217;t use soap or shampoo if you are washing in a river or stream. Fill a bucket with water instead, and find a place away from the water source to wash yourself.
Don&#8217;t leave any toilet paper uncovered. Use the &#8216;cat&#8217; method and bury [...]]]></description>
			<content:encoded><![CDATA[<h3><strong>THE DON&#8217;TS</strong></h3>
<ul>
<li>Don&#8217;t <a href="http://beepartner.com/tag/camp/">camp</a> near a <a href="http://beepartner.com/tag/water/">water</a> source. <a href="http://beepartner.com/tag/camp/">Camp</a> at least three kilometres away.</li>
<li>Don&#8217;t use soap or shampoo if you are washing in a river or stream. Fill a bucket with <a href="http://beepartner.com/tag/water/">water</a> instead, and find a place away from the <a href="http://beepartner.com/tag/water/">water</a> source to wash yourself.</li>
<li>Don&#8217;t leave any toilet paper uncovered. Use the &#8216;cat&#8217; method and bury all the evidence.<span id="more-236"></span></li>
<li>Don&#8217;t leave your refuse behind or try to bury it, as scavengers will dig it up. Keep refuse in a sturdy bag and wait until you reach a town or an official municipal dump before disposing of it<em>.</em></li>
</ul>
<ul>
<li>Don&#8217;t make fires against trees or leave fires burning when departing your <a href="http://beepartner.com/tag/camp/">camp</a> site.</li>
<li>Don&#8217;t dish out money or other items to the beggars who sometimes congregate at fuel stops. Sometimes a handout to one produces a riotous free-for-all, with a shower of stones hurled at your vehicle as you flee the scene.</li>
<li>Don&#8217;t take fruit into <a href="http://beepartner.com/tag/botswana/">Botswana</a>&#8217;s game reserves or into some Zimbabwean parks, such as Mana Pools. In <a href="http://beepartner.com/tag/botswana/">Botswana</a>, you are prohibited from taking fruit into the game reserves, as elephants have a keen sense of smell and will destroy your food boxes (and even your vehicle) if they smell fruit.</li>
<li>Don&#8217;t approach wild <a href="http://beepartner.com/tag/animals/">animals</a> even if they look peaceful.</li>
<li>Don&#8217;t try to handle tame-looking <a href="http://beepartner.com/tag/animals/">animals</a>, such as mongoose and suricate, as they could have rabies.</li>
<li>Don&#8217;t imitate the Camel Trophy teams. Drive slowly and stay alert.</li>
<li>Don&#8217;t under any circumstances make new tracks in sensitive areas such as the gravel plains of the Namib Desert. If the road is washboarded, deflate your vehicle&#8217;s tyres and proceed slowly.</li>
<li>Don&#8217;t make a noise at <a href="http://beepartner.com/tag/water/">water</a> holes. Sit quietly and be patient. You will be rewarded.</li>
<li>Don&#8217;t throw a burning cigarette away as it could cause a serious veld fire. Smokers should never discard their cigarette butts in the veld, but should use a tin as an ashtray.</li>
<li>Don&#8217;t throw your leftover food into the bush. Put it in a refuse bag and hang the bag high above the ground at night.</li>
<li>Don&#8217;t feed jackal, hyaena, baboon, monkey, warthog or any other wild <a href="http://beepartner.com/tag/animals/">animals</a>.</li>
</ul>
<p>In recent years, I have noted the increasingly aggressive behaviour of baboon, monkey and hyaena in the parks of <a href="http://beepartner.com/tag/botswana/">Botswana</a> and northern</p>
<p><a href="http://beepartner.com/"><img src="http://beepartner.com/files/2008/04/beepartner.gif" border="0" alt="BEEPartner SA Economy" width="190" height="90" align="right" /></a></p>
<p>Zimbabwe. There are a number of reasons for this, but the main one is that people feed these <a href="http://beepartner.com/tag/animals/">animals</a>.</p>
<p>At Savuti in the Chobe <a href="http://beepartner.com/tag/national-park/"><strong>National Park</strong></a>, I have seen hyaena walk right into the circle of firelight, having lost their fear of fire, while people threw leftover braai meat at them in order to take a good photograph.</p>
<p>At Serondella in the Chobe and at Third Bridge in <a href="http://beepartner.com/tag/botswana/">Botswana</a>&#8217;s Moremi <a href="http://beepartner.com/tag/national-park/"><strong>National Park</strong></a>, I saw people feeding sweets to monkeys and baboons, which led to a troop of baboons attacking a <a href="http://beepartner.com/tag/camp/">camp</a> site.</p>
<p>Complaints to the authorities in <a href="http://beepartner.com/tag/botswana/">Botswana</a> seem to lead nowhere, but in Zimbabwe the game wardens are taking drastic (and deadly) measures to keep these <a href="http://beepartner.com/tag/animals/">animals</a> under control. At Okaukuejo in the Etosha <a href="http://beepartner.com/tag/national-park/"><strong>National Park</strong></a>, jackal will steal meat directly from the grill, even though the <a href="http://beepartner.com/tag/camp/">camps</a> in Namibia are fenced in (they dig holes under the fencing). The authorities here regularly shoot these <a href="http://beepartner.com/tag/animals/">animals</a> to prevent them from becoming a nuisance. Remember that wild <a href="http://beepartner.com/tag/animals/">animals</a> that have lost their fear of humans are dangerous, and have to be killed. Do not unwittingly sentence these <a href="http://beepartner.com/tag/animals/">animals</a> to death by feeding them.</p>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/08/2010-african-travel-bush-etiquette-continued/feed/</wfw:commentRss>
	<dc:id>236</dc:id>	</item>
		<item>
		<title>2010 African Travel Bush Etiquette</title>
		<link>http://beepartner.com/2009/05/08/2010-african-travel-bush-etiquette/</link>
		<comments>http://beepartner.com/2009/05/08/2010-african-travel-bush-etiquette/#comments</comments>
		<pubDate>Fri, 08 May 2009 13:26:55 +0000</pubDate>
		<dc:creator>dodo</dc:creator>
		
		<category><![CDATA[Africa]]></category>

		<guid isPermaLink="false">http://beepartner.com/?p=232</guid>
		<description><![CDATA[Bush etiquette can be divided U into do&#8217;s and don&#8217;ts. Everyone has a responsibility to treat the environment and local residents with respect and courtesy.
THE DO&#8217;S

Be friendly and polite at all checkpoints and frontier posts. Respect the authority of the officials on duty.
Familiarise yourself with rules and regulations of any conservation areas through which you [...]]]></description>
			<content:encoded><![CDATA[<p>Bush etiquette can be divided U into do&#8217;s and don&#8217;ts. Everyone has a responsibility to treat the environment and local residents with respect and courtesy.<span id="more-232"></span></p>
<h3><strong>THE DO&#8217;S</strong></h3>
<ul>
<li>Be friendly and polite at all checkpoints and frontier posts. Respect the authority of the officials on duty.</li>
<li>Familiarise yourself with rules and regulations of any conservation areas through which you will be passing. Adhere to those rules.</li>
<li><a href="http://beepartner.com/tag/camp/">Camp</a> only in designated sites, unless for some reason (breakdown or emergency) this is impossible.</li>
<li>Before <a href="http://beepartner.com/tag/camp/">camping</a> near an <a href="http://beepartner.com/tag/african/">African</a> homestead, always ask the <a href="http://beepartner.com/tag/permission/">permission</a> of the inhabitants. If some form of remuneration is required, then you should pay it.</li>
<li>Never walk into an <a href="http://beepartner.com/tag/african/">African</a> homestead without first obtaining <a href="http://beepartner.com/tag/permission/">permission</a>. Wait outside the enclosure until somebody comes to investigate, and then ask for <a href="http://beepartner.com/tag/permission/">permission</a> to enter. Ask this person to act as a guide, as unknown circumstances or conditions may exist which you may disturb. Although you may be curious about their lifestyle, do not enter or peer into their houses. The residents have the same right to privacy which you enjoy in your own home.</li>
<li>Many <a href="http://beepartner.com/tag/african/">African</a> <a href="http://beepartner.com/tag/people/">people</a> like to visit travellers at their campsite. This is their way of welcoming you to their neighbourhood. They may like to sit at the fire for a while, as fire plays a central role in their community as a symbol of hospitality. Do not offer them alcohol; rather give them a cool drink and some food as a token of thanks and hospitality.</li>
<li>Be aware of cultural differences when meeting indigenous <a href="http://beepartner.com/tag/people/">people</a>. For instance, do not play rap music and expect a Himba girl to dance with you. <a href="http://beepartner.com/tag/african/">African</a> <a href="http://beepartner.com/tag/people/">people</a> dance for different reasons from Western <a href="http://beepartner.com/tag/people/">people</a>. Do not give them presents that they cannot use — if you wish to give them something, offer them sugar or mealie meal.</li>
<li>Do not cheat <a href="http://beepartner.com/tag/people/">people</a> when buying artefacts and souvenirs, or try to buy something that is not being offered for sale: some items, such as the conch shells worn by Himba women, are heirlooms passed down from mother to daughter.</li>
<li>Always ask <a href="http://beepartner.com/tag/people/">people</a> if you may take photographs of them. If they would like payment, oblige them.</li>
<li>Use <a href="http://beepartner.com/tag/firewood/">firewood</a> sparingly. I find it shocking how some groups misuse <a href="http://beepartner.com/tag/firewood/">firewood</a>. In Botswana and Namibia, I have observed <a href="http://beepartner.com/tag/people/">people</a> using 4&#215;4 vehicles and chains to uproot trees to make their fires! These types of <a href="http://beepartner.com/tag/people/">people</a> need to become aware of the damage they are doing to the environment. In the desolate Namib and Kalahari deserts, you should not gather <a href="http://beepartner.com/tag/firewood/">firewood</a> at all, but should take your own charcoal or <a href="http://beepartner.com/tag/firewood/">firewood</a>.</li>
</ul>
<p><a href="http://beepartner.com/"><img src="http://beepartner.com/files/2008/04/beepartner.gif" border="0" alt="BEEPartner SA Economy" width="190" height="90" align="right" /></a></p>
<ul>
<li>Ask the owner&#8217;s <a href="http://beepartner.com/tag/permission/">permission</a> before you enter, or <a href="http://beepartner.com/tag/camp/">camp</a> on, a farm or any enclosed property.</li>
<li>If you open a gate, close it once you have passed through.</li>
<li>Wherever possible, ask <a href="http://beepartner.com/tag/permission/">permission</a> before you take any water from a well or pump.</li>
<li>Rowdiness should not be allowed in the <a href="http://beepartner.com/tag/camp/">camp</a> after 10:00 p.m. Remember that everyone needs a good night&#8217;s rest after a full day.</li>
<li>Do not leave your car alarm on at night as it could go off and disturb everyone&#8217;s sleep.</li>
<li>Leave only your tracks when departing from a <a href="http://beepartner.com/tag/camp/">camp</a> site.</li>
<li>Report poachers, hoodlums and rowdy <a href="http://beepartner.com/tag/people/">people</a> to the authorities.</li>
</ul>
]]></content:encoded>
			<wfw:commentRss>http://beepartner.com/2009/05/08/2010-african-travel-bush-etiquette/feed/</wfw:commentRss>
	<dc:id>232</dc:id>	</item>
	</channel>
</rss>

<!-- Dynamic Page Served (once) in 0.943 seconds -->
