Legal Framework of BEE
BEE Act (2003)
B-BBEE (BEE) is legally based on the law Broad-Based Black Economic Empowerment Act No. 53 of 2003, which became effective in January 2004.
Codes of Good Practice (2019)
The subsequently issued Codes of Good Practice address the practical implementation of the general B-BBEE Act, which does not contain any compulsory regulations for any private enterprise or private investor. International investors do not have to “give” shares in their local entity away. However, a decent B-BBEE rating has become quite important for anybody who is doing business in South Africa and is mostly achievable without loosing control or ownership to empowered parties. The Codes of Good Practice, which fill out the general provisions of the Act, have been revised and amended and the latest codes are the amended codes published in 2019.
Sector Charters (2015 – 2019)
For certain industry sectors, sector charters had been published, which override and amend certain terms and conditions of the Codes of Good Practice. All previous Sector Charters have been abolishes and are currently – step by step – being replaced by new Sector Codes in the following sectors only:
- Petroleum & Liquid Fuels
- Integrated Transport (8 Sub-Codes)
- Chartered Accounting