9 June 2017 by BEE Alert

Registration of major B-BBEE transactions

On 9 June 2017, the Department of Trade and Industry published a notice in Government Gazette 40898 setting out the final thresholds for registration of Major B-BBEE Transactions.

In terms of the notice, any Major B-BBEE Transaction having a Transaction Value of at least R25 million must be registered with the B-BBEE Commission. A Major B-BBEE Transaction is any transaction that has resulted or will result in a measured entity claiming ownership points in terms of the ownership scorecard of the applicable BEE codes of good practice. The notice provides that Transaction Value excludes administration, professional and legal fees. The notice takes effect immediately.

Every transaction concluded on or after 24 October 2014 must be registered. All parties to the transaction have a collective responsibility to register the transaction.

The regulations to the B-BBEE Act prescribe the requirements for registering Major B-BBEE Transactions. Parties must submit the transaction for registration within 15 business days after concluding the transaction. The regulations state that the requirement for registration is not a requirement to obtain the Commission’s consent for the transaction. The regulations provide that the Commission is entitled to advise the parties of any concerns that the Commission has regarding the transaction, and the parties must then take steps to address the Commission’s concerns. If adequate steps are not taken, the Commission can then initiate an investigation in terms of the B-BBEE Act into the transaction.

Given the retrospective requirement, parties will have to give consideration to whether B-BBEE ownership transactions that they’ve entered into from 24 October 2014 require registration.

download PDF

The information and material published on this website is provided for general purposes only and does not constitute legal advice.

We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter.

We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages.

Please refer to the full terms and conditions on the website.

Copyright © 2020 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com

You may also be interested in