The Department of Trade Industry and Competition, has released the eagerly anticipated Practice Note on the regulations governing discretionary collective enterprises, such as broad-based schemes, employee share ownership programs, trade unions, not-profit corporations, cooperatives, and trusts.
This Practice Note makes clear, among other things:
The ownership requirements under the Codes are satisfied by a designated class of black beneficiaries, not necessarily by a list of beneficiaries' names;
Evergreen ESOPs, which offer corporate employees a lifetime benefit, satisfy the ownership requirements outlined in the Codes;
Minors are eligible for inclusion in Collective Enterprises' ownership calculations and decision;
a distribution may be made in kind or in cash, and either or both may be claimed under "Economic Interest" on the Ownership scorecard;
permits the Fiduciaries' application of discretion in determining the amount or share of Economic Interest disbursements to beneficiaries or participants; and
enables the measurement of voting rights by the fiduciaries casting ballots on behalf of participants or beneficiaries.
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