Continued benefits of ownership within B-BBEE
Gain a full understanding of the workings of the "once empowered, always empowered" principle, called continued benefits
Description
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
What You Will Learn!
- What are the rules relating to continued benefits or once empowered always empowered
- Calculations to be used for the determination of continued benefits
- Specific ownership rules
- Subminimum requirements
Who Should Attend!
- Practitioners in the B-BBEE environment that have a BEE partner that exists