RAIL SUB-SECTOR CODE FOR B-BBEE – INDICATORS OF EMPOWERMENT – Preferential Procurement, Enterprise Development and Socio-Economic Development
This fourth article, in a series, discusses the basics of the rail sub-sector code’s INDICATORS OF EMPOWERMENT. Please read the previous articles before reading this one. Source: Gazette 32511, Notice 1162 OF 2009, Draft Integrated Transport Sector Codes Preferential Procurement Guiding Principle The guiding principle is to use the significant purchasing power of the rail […]
Amended Forest Sector Code (FSC) – Part 2 – Sector-specific principles and applications of the code
The Amended Forest Sector Code was published in Gazette 40803 on 21 April 2017. This is the second in a series of articles listing the basics of this sector code. SECTOR SPECIFIC PRINCIPLES The Forest Sector has adopted the following sector-specific principles that guided the formulation of the FSC and are to be applied with […]
Amended Forest Sector Code (FSC) – Part 1 – Objectives and Key Principles
The Amended Forest Sector Code was published in Gazette 40803 on 21 April 2017. This is the first in a series of articles listing the basics of this sector code. The sector code lists a few objectives as shown below: KEY PRINCIPLES MEASUREMENT PRINCIPLES The fundamental principle for measuring B-BBEE compliance is that substance takes […]
B-BBEE REQUIREMENTS FOR JOINT VENTURES
What is a Joint Venture? Structures in business are not always simple. Implementing B-BBEE has revealed various complex structures, including joint ventures. A joint venture is a business arrangement wherein two or more parties, whether as individuals or entities, agree to combine resources for a specific business undertaking for profit. Two types of joint ventures […]
Rules for discretionary collective enterprises and BEE
Source: Government Gazette Number 44591 The purpose of the article is to provide clarity on how ownership by entities such as Broad-Based Schemes, Employee Share Ownership Programmes, Trade Unions, Not-for-Profit Companies, Co-operatives, Trusts (together “Collective Enterprises”) should be interpreted under the B-BBEE Codes of Good Practice (the “Codes) and arising from the DTIC’s Practice Note. […]
BEE and owner-driver schemes
Owner-driver schemes concern the creation of independent, small businesses by outsourcing the distribution function of larger enterprises. These businesses are typically run by former (and/or current) employees, but, with maturity, some schemes look externally for their owner-drivers. A transfer of assets, namely the vehicle(s), accompanies the implementation of the scheme. They are similar to franchising: […]
B-BBEE’s Leniency Programme
Historically, the Leniency Programme was a compliance mechanism that encouraged reporting of all major B-BBEE transactions prior to the promulgation of the amended B-BBEE Act, as well as promote adherence to the B-BEEE Act. The B-BBEE Act in section 13F(3)(b)(ii) permits the B-BBEE Commission to issue non-binding advisory opinion on any provision of the B-BBEE […]
Socio-Economic Development Element
What does the Socio-Economic Development Element entail? According to paragraph 7 of Statement 000 of the Codes of Good Practice (the Codes), one of the elements identified to advance empowerment of black people is Socio-Economic Development (SED) which is contained in Statement 500. Every measured entity on an annual basis is required to contribute 1% […]
Understanding recognition of ownership through a private equity fund
What does a Private Equity Fund for B-BBEE purposes entail? The ownership element of the Codes of Good Practice (the Codes) seeks to achieve a substantial change in the racial composition of ownership and management structures of existing and new enterprises. The use of private equity funds is one of the ways to ensure that […]
BEE Guidelines on Complex Structures & Transactions, and Fronting
The BEE Commission published a summary document combining the key topics surrounding Broad-Based Black Economic Empowerment (B-BBEE) and its implementation for Complex Structures and Transactions, and Fronting. The Guide is published in two sections. • Section A: Complex Structures & Transactions• Section B: Fronting This article will deal with Section A only. A second article […]