How to Calculate Public Interest Score
A Public Interest Score (PIS) is a measure used in South Africa under the Companies Act, 2008 to determine the level of public interest in a company. The score is calculated at the end of each financial year and is used to determine whether a company must undergo an audit, an independent review, or meet other regulatory requirements. The score is based on factors such as the number of employees, turnover, liabilities, and shareholders. Learning how to calculate a Public Interest Score helps business owners ensure compliance with South African company regulations.
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Determine the Average Number of Employees
Count the average number of employees who worked for the company during the financial year.
Each employee contributes one point to the Public Interest Score.
- Calculate the average number of employees
- Include full-time and part-time employees where applicable
- Record the total employee points
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Calculate the Annual Turnover
Determine the company’s total annual turnover or gross revenue for the financial year.
You earn one point for every R1 million (or part thereof) in annual turnover.
For example, if the annual turnover is R12.4 million, the company scores 13 points.
- Calculate the annual turnover
- Divide by R1 million
- Round up any fraction to the next whole number
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Calculate Third-Party Liability Points
Determine the value of the company’s liabilities to third parties at the financial year-end.
The company receives one point for every R1 million (or part thereof) owed to third parties.
For example, if third-party liabilities are R8.2 million, the company scores 9 points.
- Calculate total third-party liabilities
- Divide by R1 million
- Round up any fraction to the next whole number
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Count the Beneficial Interest Holders
Determine the number of individuals who have a beneficial interest in the company’s issued securities at the end of the financial year.
Each beneficial interest holder contributes one point to the Public Interest Score.
- Count all beneficial interest holders
- Verify shareholder records
- Record the total points
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Calculate the Total Public Interest Score
Add together all the points from employees, turnover, third-party liabilities, and beneficial interest holders.
The formula is:
Public Interest Score = Employee Points + Turnover Points + Third-Party Liability Points + Beneficial Interest Holder Points
For example:
- Employee Points = 45
- Turnover Points = 13
- Third-Party Liability Points = 9
- Beneficial Interest Holder Points = 6
Public Interest Score = 45 + 13 + 9 + 6 = 73
- Add all four categories
- Verify each calculation
- Record the final Public Interest Score
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