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On 2 January 2025, the Johannesburg High Court declared the City of Johannesburg’s Protection and Security for VIP Risk Management System Policy (the “Policy”) unconstitutional. The Court ruled that the Policy was inconsistent with the Remuneration of Public Office Bearers Act 20 of 1998 (the “Act”) and ministerial determinations issued in terms thereof, rendering it…

A company’s name is integral to the company’s identity. Apart from being a legal requirement in South Africa, a company’s name builds brand recognition, ensures compliance with regulations, and establishes its legal identity, amongst other reasons. Companies, however, sometimes choose to use a name which differs from its registered name, which may lead to potential…

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…