As a result of a variety of high level interventions with regard to the “*new BEE Codes of Good Practice*(Download New BEE Codes Here!)”:http://https://www.into-sa.comhttps://www.into-sa.com/uploads/download/file/245/BEE_Codes_of_Good_Practice__2013_.pdf, the Department of Trade and Industry (DTI) has today published Notice 226 of 2014. By means of this notice the transitional period during which the old Codes of Good Practice may still be applied at any BEE Verification is now extended. Originally this period was supposed to end on 10 October 2014, but is now extended another six months and will be ending on 30 April 2015.
This leaves more time for most of the affected companies “to get their house in order” and prepare for their first verification under the new Codes in 2015 or early 2016.
The DTI has further relaxed the application of the Schedule of Economically Active Persons (EAP) under the new Codes. So far the existing schedule that distinguishes between white, coloured, Asian and black reflected the national demographics, which posed detrimental to companies in certain regions, where this demographic ratios could not be achieved. If the company (measured entity) has its head quarters or sole business focus in a specific region or province, adopted and amended EAP Schedules may be applied instead of the national one.
We will keep you posted on further developments as – among others – the Policy Steering Committee of the European Commission in South Africa (Business Focal Point) continue to lobby for amendments that will ease the strain under the new Codes on foreign owned companies.