Tag Archives: BBBEE Codes

When Does a Trust Qualify for Ownership Points?

Because of the wide range of benefits that Broad-Based Black Economic Empowerment (BBBEE, or BEE for short) compliance can confer, many businesses in South Africa are looking for ways to achieve a good rating on the scorecard. Level 1 is the highest ranking (there are eight levels in total), and the goal is to get as close to this as possible. The higher your score, the better your chances of preferential procurement and success in government tenders, and the bigger your contribution to the

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How Can I Increase My BBBEE Score Under the New Codes?

Since the amendments to the Codes of Good Practice for Broad-Based Black Economic Empowerment (BBBEE) came into effect in May 2015, there has been considerable confusion among businesses as to what it means for their BBBEE score going forward. The new Codes, which supplement the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, introduced some big changes for scoring. While there was concern about having ratings lowered, there has been scope for certain businesses to actually improve their position. The goal for organisations now is

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Explained: Old BBBEE Codes vs New BBBEE Codes

The revisions to Broad-Based Black Economic Empowerment (BBBEE, or BEE) legislation that came into effect in May 2015 continue to cause confusion and anxiety among business owners in South Africa. The original BBBEE legislation comprised the Broad-Based Black Economic Empowerment Act, Number 53 of 2003, and its supplementary, detailed Codes of Good Practice (issued in 2007). The guiding goal of the legislation has always been to effect positive transformation in the business world, addressing the legacy of apartheid and empowering

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Workers trusts the smart way to obtain BEE ownership points

THE PURPOSE OF AN EMPLOYEE’S BENEFIT TRUST (EBT) IS TO ACHIEVE THE FOLLOWING: Maximising BEE ownership points whilst achieving: to incentivize participating employees to contribute to the profitability and growth of the donor; to empower the employees through participation and wealth creation; to encourage alignment to the company values and to retain employees. In terms of the BEE Codes, black participants in an EBT holding rights of ownership in the company being measured (Measured Entity) may contribute: SCORECARD POINTS Maximum

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“Employees trust” the answer to BBBEE Ownership

What is required by the BBBEE act in the “Ownership” element? “BBBEE Ownership Scheme” means a collective ownership scheme constituted with the view to facilitating the participation of specified natural persons in the benefits flowing from the ownership by that scheme or by its fiduciaries of an Equity Interest. Key Measurement Principles An Enterprise may be awarded points for the participation of black people in the Economic Interest or Exercisable Voting Rights of the Enterprise, in accordance with the ownership scorecard

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Old BBBEE codes vs New BBBEE codes

The Broad Based Black Economic Empowerment (BBBEE) Act, gazetted in 2007, will be used on all financial periods ending before 1 May 2015. If your financial period should end after 1 May 2015, the new gazetted BBBEE Verification codes must be used. This means that a white owned company can still qualify as a level 1 company if all the elements of the old codes were correctly implemented.  It is possible for companies that are only using the 2013 financials now

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Why amended BBBEE Codes of Good Practice are causing quite a stir

There has been a huge amount of interest generated by the DTI with the Amended BBBEE Codes of Good Practice. In October 2013 it is estimated that as many as three thousand people attended the presentations and we were graced with the presence of President Jacob Zuma and two other ministers who were honourary speakers at the event. BBBEE has become the standard way in which we do business in South Africa. It has been noted that the Amended BBBEE

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Will the amended BBBEE act create development and upliftment for poor?

It has been said and proven that one inequality cannot be rectified by another. With the introduction of the policy of Broad Based Black Economic Empowerment in 2007, replacing the first ideology of narrow-based Empowerment, based exclusively on black ownership, most small to medium companies in South Africa relished the idea of correcting the disastrous effects of the previous apartheid based dispensation, knowing that a business entity can become BEE compliant without giving up shares in their mostly private or family

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Revised BBBEE Codes – Leaving an unnecessary state of panic

Recent talks about the revised codes for the B-BBEE has left many businesses in distress. This was basically due to the lack of communication as business owners only heard about the radical ideas and changes. This lack of information about what exactly is going on, left business owners worried about the consequences of the revised codes, and many have virtually given up on compliance as the talks gave the impression that it is going to be extremely difficult to be

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Client Testimonial

"I would like to thank all the staff at Cenfed/Chamberlink for their professional and friendly service.

We have dealt with numerous BEE verification agencies and have found that Cenfed has a proper procedure that they stick to. We have never experienced the BEE verification process in this manner before and have come to the realisation that Cenfed are doing it correctly.

Thank you for your patience and advice and the wonderful manner in which Yolandi Storm conducted herself with the on site audit.

We would recommend Cenfed to anyone in need of assistance with their BEE verification."

Monique Beets - Accounting Clerk
TMF Construction & Electrical CC