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Showing posts from February 5, 2015

NEW BBBEE CODES OF GOOD PRACTICE

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The updated Broad-Based Black Economic Empowerment Codes of Good Practice, effective 1 May 2015, actively addresses ownership transactions. Address these requirements a.s.a.p. to obtain a rating before end April 2015 as to have another year to address the new requirements.

QSE SECTOR COMPANIES:  R10-R50 million annual turnover 

Ownership is considered a “Priority Element”, thus unavoidable to maintain a BBBEE status of Level 6 or above Must comply with ALL FIVE elements of the new codes51% black-owned companies will automatically receive Level 2 status100% black-owned companies will automatically receive Level 1 statusMust address properly structured BBBEE plans, together with a cost/benefit analysis, and a skills development planAn appropriate ownership transaction must be in place The ownership target remains unchanged at 25% plus 1 share

Ways to address ownership requirements: e.g. direct black investment by one of the many black-owned investment or private equity firms or a vendor-…