RANDCO

Menu

CALCULATING YOUR COMPANY’S PUBLIC INTEREST SCORE:

In practice, the Public Interest Score (PI Score) is a pivotal factor in the corporate governance of South African companies.

 

It determines the level of financial reporting and auditing required for a company.

 

For instance, a PI Score below 100 means a company is not obligated to have its financial statements audited unless specified by its Memorandum of Incorporation. Companies with a PI Score between 100 and 349 points must have their financial statements audited if they are internally compiled.

 

Those with a score above 350 are mandated to have their financial statements audited regardless. This score also influences whether a company needs to submit its Annual Returns using XBRL, a global standard for exchanging business information.

 

Additionally, companies with a high PI Score may need to establish a social and ethics committee, reflecting the importance of ethical business practices in relation to public interest.

 

Thus, the PI Score serves not only as a measure of public interest but also as a regulatory tool ensuring that companies with significant social impact maintain high standards of financial transparency and accountability. To determine the obligations of the company after calculating the PI Score please download the Decision Tree.

Click here

The PI Score is calculate by determining the following factors:

What type of company is your company? A public company ends with the letters - Ltd
A private company ends with the letters - Pty Ltd
A Not-for-Profit Company ends with the letters - NPC
Are your financial statements are compiled independently? Yes No If your financial statements are compiled independently, it means that an external accountant or auditor has reviewed them and verified that they are accurate and complete.
Is the company required to be audited in terms of its Memorandum of Incorporation or “Articles of Association”? Yes No A company may be required to undergo an audit by its memorandum of incorporation (MOI), which is the document that sets out the rules and structure of the company. The MOI may specify an appointment of the auditor.
Did the company hold assets to an aggregate value of R5-million or more, in a fiduciary capacity for persons not related to the company at any time during the financial year? Yes No A company that held assets to an aggregate value of R5-million or more, in a fiduciary capacity for persons not related to the company, means that the company was entrusted with managing or safeguarding assets worth at least R5-million on behalf of other people who are not its shareholders, directors, employees or affiliates. This could be the case, for example, if the company is a trustee, an agent, a custodian or a broker.
Is the company owner-managed? Yes No An owner-managed company is a type of private company where the owner has a direct or indirect beneficial interest in all of the issued securities, or where every shareholder is also a director who manages the company.

Public Interest Score Factors

What was the average number of persons employed by the company during the year?

Every employee constitutes 1 point		 An “employee” has the meaning set out in the Labour Relations Act 66 of 1995. In this Act, an employee is defined as: “(a) any person, excluding an independent contractor, who works for another person or for the State and who receives, or is entitled to receive, any remuneration; and (b) any other person who in any manner assists in carrying on or conducting the business of an employer.
What was the total number of individuals with a direct or indirect beneficial interest in the issued securities (shares and debt instruments) of the company? What was the total number of members in the company?

Every shareholder constitutes 1 point		 The term "beneficial ownership" refers to the situation where someone has some kind of stake in a company's shares, even if they don't actually own them. For example, if you have a contract that gives you the right to get dividends from the shares, or to vote on how the company is run, or to sell the shares whenever you want, you are a beneficial owner of those shares. Beneficial ownership can also happen when two or more people work together to control the shares, such as family members or business partners.
What was the total turnover of the company as at its financial year end?

Every 1 million rand of turnover constitutes 1 point		 R Turnover includes all revenue for the year including interest income, any investment income before the offset of any liabilities.
What were the total third-party liabilities of the company as at its financial year end?

Every 1 million rand of turnover constitutes 1 point		 R All liabilities, other than liabilities and loans from shareholders and or Directors.

Need some help with the iXBRL conversion?