Government Gazette #42496 was published on 31 May 2019. This gazette lists a number of changes made to the B-BBEE Code of Good Practice.
Many changes are not in force from 31st May but become effective from 01 December 2019 and Measured Entities can choose to use them now.
Changes to definitions, procurement recognition rules and ED and SD beneficiary qualifications would apply universally across the Dti Codes. This article will deal with changes made to the definitions.
Revised Schedule 1 Interpretation and Definitions
Major Changes are as follows:
Now restricted to the securing of long term employment and no longer includes further education and training. This is a significant change affecting 5 Skills Development Bonus points.
Designated Group Supplier
This is a clarification and means a supplier that is at least 51% owned by black people defined under Black Designated Groups.
Long-term contract of employment
Means a legal agreement between an individual and an entity that would employ the individual until his or her mandatory date of retirement.
30% Black Women-Owned
Means an Entity in which: (a) Black women hold at least 30% of the exercisable voting rights as determined under Code series 100; Black women hold at least 30% of the economic interest as determined under Code series 100; and (c) has earned all the points for Net Value under statement 100.
Current Equity Interest Date
Replaces the Net-Value Date with an amended wording that relates to the commencement of the Time-based Graduation Factor. It means the later of either the date of commencement of statement 100 or the date upon which the black ownership transaction became effective and unconditional.
Qualifying ESD Contributions
Amends the qualification of beneficiaries to 51% Black Owned or Black Women-owned QSEs or EMEs. Previously it included 30% Black Women-owned entities.
This article is provided for information only, and does not constitute the provision of professional advice of any kind.