BEE Codes of good practice. So, the BBBEE ownership debate continues – what to do?

BEE Codes of Good PracticeIn October 2013, the revised Broad-Based Black Economic Empowerment (Codes of Good Practice) Codes were gazetted by the Minister of Trade and Industry (DTI). These (new) BEE Codes of Good Practice came into operation on 30 April 2015 (“new codes”) thereby replacing the existing BEE Codes of Good Practice (“old codes”). BBBEE and particularly the issue of ownership is very topical now.

In May 2015 the Department of Trade and Industry issued an unexpected “clarification notice” extending compliance with the new codes (depending on the timing of the business in question’s financial year end) and further that broad-based empowerment and employee share ownership schemes will no longer score as much as individual share ownership on the BBBEE scorecard.

Although businesses have more time to comply, this has serious ramifications on many businesses.

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