By Kgomotso Ramotsho

Trade and Industry Minister, Rob Davies, published a notice in the Government Gazette on the threshold for major Broad-Based Black Economic Empowerment (B-BBEE) transactions. The notice was published in June and stated that:

• All major B-BBEE transactions, as per code 100 of the Codes of Good Practice as amended, which transaction value equals or exceeds R 25 million, must be registered with the B-BBEE Commission, excluding Statement 103.
• Multiple parties/entities involved in the transaction need to register the transaction as a collective with the B-BBEE Commission.
• All major B-BBEE transactions concluded on or after the proclamation date of the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended, namely, 24 October, but before the final registered with the B-BBEE Commission within 60 calendar days of the final publication of the current notice.
• Any person may voluntarily register any major B-BBEE transaction consistent with the above threshold, concluded before 24 October 2014 with the B-BBEE Commission.
• Parties/entities involved in the transaction must submit documents for the registration of a major B-BBEE transaction according to the requirements prescribed by the B-BBEE Commission.

According to the notice, ‘a major B-BBEE transaction’ means any transaction between entities/parties that results in ownership recognition in terms of Statement 100. The threshold of registering the transaction with the B-BBEE Commission is based on the transaction value, excluding administration, professional and legal fees.

For Statement 102, transaction value means the value of the sale of assets, business and equity instrument.

The department said the threshold may be amended from time to time by a notice in the Gazette as determined by the minister.

Kgomotso Ramotsho Cert Journ (Boston) Cert Photography (Vega) is the news reporter at De Rebus.

This article was first published in De Rebus in 2017 (Aug) DR 9.