Posts by Stratlaw

Introduction The Employment Equity Act (EEA) and the Broad-Based Black Economic Empowerment (B-BBEE) legislation are both critical components of South Africa’s framework for promoting equality and addressing historical injustices. This opinion examines whether the EEA is considered part of the B-BBEE legislative framework. Legal Framework Analysis Conclusion The Employment Equity Act is not formally part…

Introduction The term “warm bodies” in the context of Broad-Based Black Economic Empowerment (B-BBEE) refers to the practice of including individuals in ownership or management structures primarily to fulfill B-BBEE compliance requirements, without genuine participation or contribution to the business. This opinion analyzes the implications of this practice under South African law and the B-BBEE…

Introduction This opinion addresses the implications of Section 8B, Section 11(IA), and Section 42 of the Income Tax Act 58 of 1962 in relation to Broad-Based Black Economic Empowerment (B-BBEE) ownership structures. It also considers relevant SARS binding private rulings (BPRs 253, 343, and 400) and the precedent set by Welch’s Estate v Commissioner for…

Introduction The Broad-Based Black Economic Empowerment (B-BBEE) Act of 2003 aims to address historical inequalities in South Africa by promoting the participation of black individuals in the economy. Within this framework, two key classifications are Exempted Micro Enterprises (EMEs) and Qualifying Small Enterprises (QSEs). Understanding the eligibility criteria for these entities is crucial for compliance…

Introduction Employment Share Ownership Programme (ESOPs) are a crucial element of Broad-Based Black Economic Empowerment (B-BBEE) in South Africa. Designed to enhance economic participation among employees, particularly those from historically disadvantaged backgrounds, ESOPs facilitate the transfer of ownership within companies. This article examines the concept of ESOPs, including the use of unit trusts, as outlined…

Introduction Broad-Based Black Economic Empowerment (B-BBEE) aims to rectify historical injustices in South Africa by promoting economic participation among previously disadvantaged individuals. One of the key mechanisms to achieve this is through Broad-Based Ownership Schemes (BBOS), which facilitate the transfer of ownership and economic benefits to black South Africans. This article explores the concept of…

Introduction The ownership element of Broad-Based Black Economic Empowerment (B-BBEE) is a critical component of South Africa’s efforts to redress historical inequalities in the economy. This element assesses the extent to which black individuals—defined as African, Coloured, and Indian South Africans—hold equity in businesses, directly influencing B-BBEE ratings. Understanding the ownership component is essential for…

Introduction Broad-Based Black Economic Empowerment (B-BBEE) is a crucial policy in South Africa aimed at addressing the historical injustices of apartheid by promoting economic participation among previously disadvantaged groups. The implementation and enforcement of B-BBEE legislation involve several key players, including the Department of Trade and Industry (DTI), the B-BBEE Commission, and the Judiciary. Each…