All that Glitters is not Gold!

“All that glitters is not gold”. True and valid ownership in Broad-based black economic empowerment deals using trusts.

The aim of the Broad-Based Black Economic Empowerment Act 53 of 2003 (B-BBEE Act) is the facilitation of B-BBEE by giving access to the economy which results in the necessary economic transformation of the South African economy.

There is a clear misalignment between what is a legal trust and a trust that is B-BBEE compliant. There are different interpretations to this that have resulted in the BEE commissioner pronouncing that some trusts are currently invalid.

It is therefore important that the ownership structures used are both correct in terms of not just the law in terms of what constitutes a trust, but fulfills the BEE Act in terms of economic interest and voting rights as outlined by the code requirements. This alignment is very important.

This is probably making you wonder if the trust in place in your entity is a valid one, or if it has any fronting indicators.

We at EconoBEE provide guidance in setting up and dissolving trusts and the advice we offer in setting up these trusts not only focuses on the ownership element, but we also make sure it makes business sense. We also review documentation of trusts that are already in place to assist with the identification of fronting indicators and provide corrective measures thereof.

Join us for the following upcoming workshops:

Title: 2-hour overview – Enterprise and Supplier Development
Date: 13 November 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg

Title: 2-hour overview – Procurement
Date: 21 November 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg

Title: 2-hour overview – Socio – economic Development
Date: 27 November 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg

Title: Full Day B-BBEE Workshop
Date: 03 December 2019 (JHB); 05 December 2019 (DBN)
Duration: 09h00 to 16H30
Price: R3 913.04 Excl VAT (50% discount for our Managed Service Clients)
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg; Durban – Office No 4C, The Circle, Douglas Crowe Drive, Ballito

Title: 2-hour overview – Verification
Date: 04 December 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg

Title: Half – day B-BBEE Workshop
Date: 10 December 2019 (JHB)
Duration: 09h00 to 13h00
Price: R1 700 Excl VAT (Free of charge for our Managed Service Clients)
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg

Contact us on 011 483 1190 to book. For more information, click here

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