With the introduction of the Legal B-BBEE Sector Codes Of Good Practice, there are a few key concepts to take note of that differ from the Amended General B-BBEE Codes of Good Practice. These concepts apply strictly to the Legal B-BBEE Sector Codes Of Good Practice. A few of those key concepts identified are as follows:
Advocate means a legal practitioner who is admitted and enrolled as such in terms of the LPA;
Associate means an attorney employed in such a capacity by an LSME in terms of an employment agreement concluded by these parties;
Attorney means a legal practitioner who is admitted and enrolled as such in terms of the LPA;
51% black owned means an LSME in which:
black people hold at least 51% of the exercisable voting rights; and
black people hold at least 51% of the economic interest;
51% black women owned means an LSME in which:
black women hold at least 51% of the exercisable voting rights; and
black women hold at least 51% of the economic interest;
Board of directors means, in respect of an incorporated LSME, a body that is constituted by the directors of such LSME, and in respect of a partnership, a body which is constituted by the partners of such an LSME, which, in each event, is responsible for the executive management decisions and/or strategic direction of such an LSME;
Designated categories means black women, black youth, black people with disabilities and black people from the rural areas, as contemplated in this LSC;
ELE means an exempted law firm which generates annual revenue of not more than R5 million or an advocate who generates annual revenue of not more than R3 million and is exempted from measurement as contemplated n this LSC respectively;
Equity partner/director means a partner or a director, the latter notwithstanding the definition ascribed to that term in the Companies Act, who has an ownership interest in an LSME and shares in the profits of that LSME and is liable for the expenses and liabilities of such an LSME;
Executive management for the purposes of this LSC, means executive management shall be constituted by members of the various sub-committees established by the board including any executive committee, or in the case of a partnership, an equivalent structure to carry out and implement specific functions and/or duties, as may be delegated to such sub-committees by the board, from time to time. Such members may include without limitation, managing partners, chairpersons and chief executive persons who are attorneys;
Incorporated LSME means an LSME constituted, organised, and incorporated by one or more attorneys in accordance with the provisions of the Companies Act, and registered and established as a law firm with the LPC in terms of the provisions of the LPA;
Large LSME means an LSME which generates a total revenue of more than R25 million per annum in the case of a law firm and more than R15 million in the case of an advocate;
Law firm means an LSME which has been established by one or more attorneys and is duly registered with the LPC, in terms of the provisions of the LPA, for the purposes of engaging in the business and practice of law in South Africa;
Legal practitioner shall bear the meaning ascribed to that term in the LPA, but for the purposes of the LSC, it shall include only:
attorneys registered with the LPC and practicing as such; and
advocates, registered with the LPC and practicing as such;
LPA means the Legal Practice Act No. 28 of 2014, as amended;
LPC means the Legal Practice Council, which is a national statutory body established in terms of section 4 of the LPA. The LPC and its provincial councils regulate the affairs of and exercise jurisdiction over all legal practitioners (attorneys and advocates) and candidate attorneys and pupils;
LSC means this Legal Sector Code, gazetted in terms of section 9(1) of the B-BBEE Act;
LSME means a Legal Sector Measured Entity in the form of a law firm in the case of attorneys whether as sole practitioner, in a partnership, an incorporated legal entity or an individual advocate;
LSTF means the Legal Sector Transformation Fund to be established in terms of paragraph 37 of this LSC, by the Charter Council, for the purpose of receiving and administering contributions made by qualifying LSMEs and advocates and any ELEs seeking enhanced recognition in terms of this LSC, to provide financial assistance and support to black legal practitioners and for transformation-related purposes as may be determined by the Charter Council from time to time;
Partner means an attorney who has been employed in such capacity by an LSME who is entitled to the profits of such LSME and is liable for its expenses and liabilities;
Partnership means an LSME, other than an incorporated LSME established and constituted by two or more attorneys, registered with the LPC in accordance with relevant provisions of the LPA, to manage and oversee the business operations of such LSME and share the profits and liabilities of such LSME;
PGL means Practice Group Leaders, who are generally equivalent and have the same rank as the heads of departments within the LSME, and carry out the same mandate and/or functions, as heads of departments, as the case may be, within an LSME;
Salaried Director for the purposes of this LSC means, notwithstanding the definition ascribed to that term in the Companies Act, an attorney employed in that capacity by an LSME who does not participate in the profits of the LSME nor has a legal entitlement to such profits and is not liable for the expenses and liabilities of such LSME;
Sole Practitioner means an LSME, which, in the case of attorneys, a firm which has been established and is operated by a single attorney as a law firm and registered with the LPC in terms of the provisions of the LPA;
Technical Services are available to guide Members in understanding the new requirements of the Legal B-BBEE Sector Codes of Good Practice
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