Encumbered Equity – This is the debt (acquisition debt) that is still outstanding from the black owned equity to the organisation as at the end date of the current scorecard.
Unencumbered Equity – This is the value of the black owned equity as at the end date of the current scorecard MINUS the Encumbered Equity.
Black New Entrants – Black participants who hold rights of ownership (economic interest and exercisable voting rights) in an organisation and who, before holding these rights, have not held rights of ownership in any other entity which has a value of more than R 20 million.
Net Value – the result of either formula A or B, depending on which of the formulas gives the lesser number of points.
Ownership fulfilment – Ownership fulfilment occurs on the release of all black participants in a Measured Entity from all third-party right arising from financing their transaction with the Measured Entity or if all black participants in the enterprise has never been subject to any such third-party rights.