Trusts have become a popular tool to facilitate Ownership for purposes of compliance with the requirements of the B-BBBE (Broad-Based Black Economic Empowerment) Act. It is however important that Companies take note of the requirements for recognition of such a Trust in an Ownership transaction. It is important to understand that a trust is seen as a Broad Base Ownership Scheme and as such to ensure that black people effectively own and control the ownership rights held through a Trust, The...

More often than not, we are told by clients that they don’t see why they should be Broad-Based Black Economic Empowerment (B-BBEE) compliant. They argue that it is an expensive process to become BEE compliant and they feel it is a worthless exercise and not worthwhile. If you have a good BEE scorecard to possibly qualify for tenders there are certainly prospects in exploring tender opportunities. To eliminate the unfairness of the awarding of tenders, companies should know that they have...

It is important to ensure that you have your Enterprise & Supplier Development in place for your Broad-Based Black Economic Empowerment (B-BEE) verification.  Under the Codes of Good Practice generic scorecard, you are able to obtain 5 points under Enterprise Development and 10 points under Supplier Development. This is 15 points that can be guaranteed if you comply with the requirements.  The first requirement is that the Enterprise, as well as the Supplier Development Beneficiary,...

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...