In certain instances, it is necessary to provide proof of the percentage of black ownership within an entity regardless of the B-BBEE level obtained by that entity.
Business entities, especially those who are not currently in possession of a B-BBEE certificate or those who are not required to provide a B-BBEE certificate as proof of B-BBEE status, can therefore request a verification agency to perform verification on only the ownership element of the B-BBEE scorecard to confirm the percentage black ownership held in the entity.
What is an Ownership Certificate?
This is a certificate issued by a SANAS accredited verification agency based on the B-BBEE ownership of the entity in question, performed under the requirements stated in Code 100 of the Broad-Based Black Economic Empowerment Codes of Good Practice.
This certificate reflects the full trading name of the company, registration number and the percentage of black ownership in the entity. This certificate is valid for a period of 12 months from the date that it was of issued.
The Ownership certificate does not replace the BEE certificate or scorecard as it only reflects the black ownership in the entity and can therefore not be used for procurement purposes.
Black shareholders can be Coloured, Indian or African people.
“Black People” is defined in the Broad-Based Black Empowerment Act as African, Coloured and Indian people:
- Who are citizens of the Republic of South Africa by birth or descent; or
- Who became citizens of the Republic of South Africa by naturalisation-
- Before 27 April 1994; or
- On or after 27 April 1994 and who would have been entitled to acquire citizenship by naturalisation before that date.
What steps does one need to follow to obtain an Ownership Certificate?
- Tell your BEE legal advisor that you need an Ownership Certificate;
- Your BEE legal advisor will request the relevant information from you;
- Upon receipt of all the requested information, your legal advisor will submit these documents to a SANAS accredited verification agency;
- The Agency will then get in contact with you to verify the correctness of all the information and documents as submitted;
- The verification agency will then issue your certificate within a period of 4 to 6 weeks.
Contact your SEESA B-BBEE legal advisor for more information regarding the Ownership Certificate or “SMS” the word “SEESA” to 45776 and a Legal Advisor will contact you.
About
the author:
Shane Meyer is an admitted attorney who completed his LLB degree at the
University of Western Cape. Shane is currently a B-BBEE legal advisor at the
SEESA Cape Town branch.
Resources:
- Government Gazette 36928 (Codes of Good Practice);
- Broad-Based Black economic Empowerment Act, 2003 (as amended)