Long-awaited B-BBEE thresholds published
In terms of new B-BBEE Regulations (the “Regulations”) issued by the Department of Trade and Industry (the “DTI”) on 6 June 2016, all parties to a “major B-BBEE transaction” are required to register the transaction with the B-BBEE Commission. A transaction constitutes a “major B-BBEE transaction” if it falls above a certain threshold, which was not published at the time the Regulations were issued.
On 8 November 2016, the DTI published proposed thresholds for “major B-BBEE transactions” for public comment. In terms of this publication, all major B-BBEE ownership transactions, as per code 100 of the B-BBEE Codes of Good Practice, equal to or greater than R100m, calculated by either combining the annual turnover of both entities or their asset values, must be registered by the B-BBEE Commission.
The DTI’s publication proposes that all “major B-BBEE transactions” concluded between 24 October 2014 (being the date on which the amended Broad-Based Black Economic Empowerment Act, 2003 came into effect) and the date of final publication of the thresholds for “major B-BBEE transactions” must also be registered with the B-BBEE Commission within 30 days after such final publication.