Multinational Ownership
The codes of good practice allow for multinationals that have global practices preventing them from complying with the ownership element of BEE, to gain ownership points through the implementation of equity equivalent programmes. For any equity equivalent programme to be recognised as a contribution under the codes, the multinational must consult with their sectoral line minister and thereafter obtain the approval from the DTI. To receive such approval, the proposal must demonstrate commercial viability, long-term sustainability and contain the assurance that business and/or technical skills will be transferred. Ownership Solutions will assist in the following processes:
- To manage a target setting exercise which will include determining an appropriate target for the company and preparing the justification for that target;
- To write up a high level strategy to obtain the in-principle approval by the international head-office;
- To set fact finding meetings with the corporation, who have venture capital funds or educational initiatives as part of their BEE commitments;
- To prepare a written application for the approval of the equity equivalent programme and to process the application through the dti, which commences with an application for exemption from selling equity on the basis of a global practice; and
- To assist with the initiation of the rollout of the company’s equity equivalent programme.