(3)     For the purposes of this section –

‘broad-based employee share plan’ of an employer means a plan in terms of which –

(a)     equity shares in that employer, or in a company that is an associated institution as defined in the Seventh Schedule in relation to the employer are acquired by employees of that employer;

[Paragraph (a) substituted by section 10(1)(b) of Act 60 of 2008, by section 9 of Act 17 of 2017 and by section 7 of Act 34 of 2019]

(b)     employees who participate in any other equity scheme of that employer or of a company that is an associated institution as defined in the Seventh Schedule in relation to that employer are not entitled to participate and where at least 80 per cent of all other employees who are employed by that employer on a permanent basis on the date of grant (and who have continuously been so employed on a full-time basis for at least one year) are entitled to participate;

(c)     the employees who acquire the equity shares as contemplated in paragraph (a) are entitled to all dividends and foreign dividends and full voting rights in relation to those equity shares; and

(d)     no restrictions have been imposed in respect of the disposal of those equity shares, other than –

(i)      a restriction imposed by legislation;

(ii)     a right of any person to acquire those equity shares from the employee or former employee who acquired the equity shares as contemplated in paragraph (a) –

(aa)   in the case where the employee or former employee is or was guilty of misconduct or poor performance, at the lower of market value on the date of grant or the market value on the date of acquisition by that employer; or

(bb)   in any other case, at market value on the date of acquisition by that person; or

(iii)    a restriction in terms of which the employee or former employee who acquired the equity shares as contemplated in paragraph (a) may not dispose of those equity shares for a period, which may not extend beyond five years from the date of grant;