Core to an organisation’s overall Ownership score is the Net Value calculation.
Q | When it comes to complex ownership structures that include private equity ownership and trusts, can an organisation use a B-BBEE affidavit (affidavit) to confirm its ownership and financial status? Put another way, can an organisation use an affidavit when applying the Flow-Through Principle in a multiple layer transaction to determine their ownership and financial status?
A | In this case, the substance over form principle is applicable. An affidavit in its prescribed format is acceptable. The intent of the Codes of Good Practice is not to benefit a complex ownership structure, but the Participants or Beneficiaries.
Certificate Collection Services can assist organisations in verifying the B-BBEE credentials of Participants before entering into ownership agreements.