
Explore practical strategies for black economic empowerment compliance, mastering B codes of good practice, and optimizing tax deductions and allowances while demystifying transformation and peer learning approaches.
Learn the rules for recognizing ownership after sale or loss of black participants' shares under B-BBEE. Explore gazettes, codes, fronting concerns, and verification approaches.
Explore requirements for benefits under B-BBEE: a black shareholder holding period of three years, net value creation, transformation, tripartite agreement with verification, enabling the once empowered, always empowered rule.
Learn the calculations behind B-BBEE scoring, applying subelement formulas for voting rights, economic interest, female designated groups, and new entrants, and why full points rarely equate to ownership.
Examine the deemed net value, the first net-value formula for equity instruments, detailing share value at exit, standard valuation method, and independent evaluation considerations and the carrying value of debts.
Learn formula 2 for calculating B-BBEE points by linking ownership, voting rights, and economic interests with key percentages. See how restrictions like no voting rights affect scores under continued recognition.
Using the Huanghai case, this lecture shows calculating continued B-bbee consequences with the modified flow-through principle, detailing ownership, voting rights, economic interest, black women, designated groups, new entrants, and verification.
Verify continued ownership benefits under B-BBEE by compiling a certificate matrix and assessing sale of shares, valuation methods, tripartite agreements, and proof of submission to the commissioner.
Examine how the public sector implements and reports on B-BBEE, including net value calculations, supplier and socio-economic development for construction, and pathways like trusts, ownership options, and internal internships.
The once-empowered/always-empowered principle, formally known as RECOGNITION OF OWNERSHIP AFTER THE SALE OR LOSS OF SHARES BY BLACK PARTICIPANTS, is poorly understood. There are rules to this calculation and the calculation is poorly explained in the various BEE code. We will cover the following:
- When does the rule apply
- What should I do to preserve the benefit
- Does it make legal sense to pursue this
- How long does it last for
The purpose of the course is To discuss the rules and calculations for the process formally known as RECOGNITION OF OWNERSHIP AFTER THE SALE OR LOSS OF SHARES BY BLACK PARTICIPANTS
•Also known as
•Once empowered, always empowered
•Continuing consequences
•High water mark
•Calculations are best used as a top-up
•Maximum points are 40% of the total ownership points
•BEE Act section 9
•the Minister may by notice in the Gazette issue codes of good practice on black economic empowerment that may include—
(a) the further interpretation and definition of broad-based black economic empowerment and the interpretation and definition of different categories of black empowerment entities;
•Seems clear that all interpretations must come from the minister
•Everything else is an opinion
•SANAS vs SERR Synergy
•BEE Commissioner – SASOL and Cargo Carriers cases