B-BBEE and the Draft Legal Sector Code – part 2 – Ownership

Reference documents:
Legal Practice Act, 28 of 2014
Broad Based Black Economic Empowerment Act no 53 of 2003
B-BBEE Legal Sector Code (Draft)

This article provides detail of the Draft Legal Sector Code with respect to the element Ownership. Please refer to the first article named “B-BBEE and the Draft Legal Sector Code” for introductory information too.

On 08 November 2020 the Legal Practice Council (LPC), issued an invitation to legal practitioners to participate in consultations for the development and drafting of the Legal Sector Code, as a Broad-Based Black Economic Empowerment (B-BBEE) charter for the legal profession in terms of s9 of the Broad-Based Black Economic Empowerment Act 53 of 2003 (the Act).

When reading this article be sure to read the draft sector code information contained in Statement Series 000 (Ownership) of the draft code referred to in the previous article too.

Ownership

Voting rights: means a voting right attaching to an Equity Instrument owned by or held for a participant measured using the Flow through Principle or the Control Principle.

Economic interest: means a claim against an Entity representing a return on ownership of the Entity similar in nature to a dividend right, measured using the Flow Through and, where applicable, the Modified Through Principle.

As the date for feedback from legal practitions expired in December 2020, we await an updated draft sector code from the Legal Practice Council.

Author Craig Tonkin

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