Corporate Governance


Trust Deed

The operations of the Distell Development Trust are governed by the Trust Deed.

One of the salient provisions of the Trust Deed is:

6.1 The principal and sole object of the Trust is to identify opportunities with the general aim of advancing BEE ownership and empowerment in the interest of, and for the benefit of, the Beneficiaries. Such object shall include, but not be limited to, providing a vehicle through which the Beneficiaries acquire economic exposure to investments derived from the acquisition of ownership interests in commercial enterprises, subject to the principles contained in and as contemplated in the Code 100 Series.” (See Annexure F)

In the Definitions section, “Beneficiaries” are described as follows:

2.6 “Beneficiaries” means:

2.6.1 the members of a Community who are Black People;

2.6.2 any Public Benefit Organisation established for the sole benefit of Black People and which also directly or indirectly benefits any person detailed in clause 2.6.1 above and;

2.6.3 any association of persons carrying on one or more Public Benefit Activity in South Africa for the sole benefit of Black People and which also directly or indirectly benefits any person detailed in clause 2.6.1 above;

provided that:

2.6.3.1 at least 85% (eighty five percent) of the value of the benefits allocated by the Trust shall accrue, directly or indirectly, to Black People;

2.6.3.2 at least 50% (fifty percent) of the value of the benefits allocated by the Trust shall accrue, directly or indirectly, to Black People, who are women;

Broad-based Black Economic Empowerment (B-BBEE)

The Distell Development Trust deed specifies that 85% of beneficiaries should be black people, and at least 50% of these beneficiaries should be women (72% were women in FY22). This is done to alleviate poverty, unemployment and inequality. Since the Trust is a broad-based ownership scheme, it is required to fulfil its mandate. This is assessed independently by an Independent Competent Person’s Report. An independent board of trustees further strengthens the governance of the Trust.

Accreditation as a B-BOS (Broad-based ownership scheme)

The Distell Development Trust (the Trust) operates as a broad-based ownership scheme (B-BOS) with the general aim of advancing BEE ownership and empowerment of black (that is, African, Coloured, Indian or Chinese) people. In order to ensure this, the Trust Deed specifies that 85% of the Trust’s beneficiaries should be black people, and that at least 50% of those black people have to be women.

An ICPR (independent Competent Person’s Report) relating to the 2016-17 financial year confirmed that “at least 95% of the value of benefits allocated by the Distell Development Trust accrues to black people and at least 55% accrues to black women”.

Each beneficiary organisation will thus be audited annually to assess what percentage of black people, particularly black women, have been benefiting from the Trust’s investment.

BBOS Report 2017(v06)

Meetings


Annual Meetings with Beneficiaries

As part of complying with the requirements for operating as a Broad-based Ownership Scheme (B-BOS), the Trustees of Distell Development Trust are required to “convene at least one meeting of Beneficiaries every Financial Year (“AGM”) and such further meetings as they deem necessary from time to time.” Among other things, the Trustees are required to present the financial statements to the Beneficiaries at the AGM. In terms of the Trust Deed, the Trustees are “entitled to determine the rules and procedures governing the convening of any AGM or any other meeting of Beneficiaries, as well as the proceedings at such meeting.”

© Distell Development Trust 2018 - A Partner Creation