On 29 March 2018 the minister of Trade and Industry announced another amendment to the amended codes of good practice.
As it stands, EME and QSE entities which is at least 51% Black Owned or even 100% Black Owned qualifies for an automatic level 2 or 1 when their turnovers respectively does not exceed R10 million of R50 million per annum. They are thus exempt to comply on the rest of the 4 elements bases on their ownership percentage.
The new announced amendment gives to all generic entities who are at least 51% Black Owned or even 100% Black Owned an automatic 2 or 1.
This amendment will apply only to real Black Owned entities and not to entities who had been structured to earn points on the ownership element. It will also exclude entities where the modified flow-through principle has been applied and other various forms of Black Owned Structured entities.
This amendment was published to the public for comment and is yet to be made final.
ABOUT THE AUTHOR
Dominique van Deventer obtained his LLB qualification from the University of the Free State and is currently a SEESA BEE legal advisor. He has been working for SEESA for 3 years and 7 months.