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The Law around B-BBEE

- Featured article by LAWYERS-ONLINE.CO.ZA - March 2019

B-BBEE stands for Broad-Based Black Economic Empowerment, and it forms a part of the South African government’s strategy for economic transformation. The law regarding B-BBEE is vast, and in some instances, it has been tailored for certain sectors.

The aim of B-BBEE is to rectify racially based inequalities through the promotions of more black management, corporate control and ownership. The Broad-Based Black Economic Empowerment Act forms the basis of the law that should be observed regarding B-BBEE.

In terms of the act, the Minister of Trade was given the authority to issue Codes of Good Practice, which will help employers and the private sector in general to implement B-BBEE compliant strategies. In the Codes of Good Practices, sections are set out that make provision for the following:

  • How to measure ownership
  • Management control
  • Employment
  • Skills development
  • Socio-economic development

In wake of this legal transformation, companies can apply to a Verification Agency for a certificate stating that they are compliant with the law. Interestingly, the JSE now requires that all listed entities should disclose their compliance with the act on an annual basis as 1 April 2018. This is good news for transformation in South Africa, and will hopefully correct further imbalances.

Should you have any requests regarding B-BBEE, talk to us and we can put you in touch with a lawyer that may be able to provide assistance.

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