Trade and industry minister, Rob Davies, has gazetted the threshold for major Broad-Based Black Economic Empowerment (B-BBEE) ownership transactions, lowering it to R25 million, from the previous R100 million.
“A Major B-BBEE Transaction” means any transaction between entities or parties that results in ownership recognition in terms of Statement 100. Davies set the threshold which must be submitted to the B-BBEE Commission in the government gazette on Friday.
All transactions with a value of R25 million or more must now be registered with the B-BBEE Commission as per Code Series 100 of the Amended Codes of Good Practice. Previously, the threshold for B-BBEE ownership transactions was R100 million.
The threshold of registering the transaction with the B-BBEE Commission is based on the transaction value excluding administration, professional and legal fees.
The amended Codes of Good Practice for Broad-based Black Economic Empowerment came into effect on 1 May 2015, with a reduced number of elements to five: ownership, management control, skills development, enterprise and supplier development and socio-economic development.
The department of Trade and Industry (the dti) said transactions concluded before 24 October 2014, the date on which the B-BBEE Act was promulgated, may be voluntarily registered with the B-BBEE Commission. (via African News Agency)