Ownership trusts have been an extremely common substitute for Ownership transactions. Trusts and similar schemes always had a dark cloud sitting over them because many believed they didn’t correctly follow the BEE legislation.
Breaking news: This week The BEE Commissioner made her first moves at defining the status of ownership schemes. The impact of which could mean many Employee or Broad Based Ownership schemes will no longer earn BEE points.
EconoBEE is an expert consultancy. Our advice has allowed many organisations to work through and implement long term sustainable strategies that remain inline with the essence of the BEE legislation. Our Managed Service is an effective consulting service to effectively manage BEE. Alternatively if you have a scheme that could soon be outlawed contact us urgently to find the most pragmatic solution.
|BEE Commission Takes Aim at Ownership Schemes|
The BEE Commissioner is doing an excellent job combating fronting. In a short space of time the Commissioner, Zodwa Ntuli has issued Practice Guides, and issued notices to various organisations she felt who were not following the spirit and intention of the codes. The latest media release concerns a consultancy who was advertising easy ways to get ownership points via training courses.
For many years we have been critical of other organisations that were offering trusts as a shortcut to getting good ownership scores. We saw this as contrary to the codes. Many consultants, agencies, legal and accounting firms are complicit in creating trusts that give no real economic interest to the beneficiaries. They say it was created in line with the codes, but they fail to read all the codes. A crucial statement in the codes, that they have missed is:
Contact EconoBEE to gather additional information on Ownership or on implementing BEE for your organisation. Click on our website for more information.
|Implementing the Amended Codes|
Changes to the BEE legislation will cause most businesses scores to drop substantially which will substantially limit their competitiveness in the market place. Alternative activities to earn points such as changing suppliers might require a radical directional change in business thinking and processes. Identifying points scoring activities while simultaneously eliminating weaknesses is essential to maintaining a satisfactory scorecard.
A good understanding of BEE is perhaps the single best method to cause long term improvements to your companies BEE status.
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While there is demand for a B-BBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…
22 September 2016
In this issue
- BEE Commission Takes Aim at Ownership Schemes
EconoBEE is an expert BEE consultancy. EconoBEE helps businesses Become BEE Compliant, prepare for verification, earn maximum BEE Points and ensure that they achieve the BEE Level they need to get more business.
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