KEY HIGH-LEVEL DIFFERENCES OF THE LEGAL B-BBEE SECTOR CODES OF GOOD PRACTICE

With the release of the Legal B-BBEE Sector Codes of Good Practice on Friday, 20 September 2024, many are still trying to unpack how implementation will take place. Below are some of the key high-level concepts / differences that were introduced under the Legal B-BBEE Sector Codes of Good Practice:

• There are Three (3) Types of Scorecards – For Advocates, Attorneys and Specialised Entities (Organs of State and Public Entities).

• The element of Ownership excludes Net Value Points.

• A new concept of “Designated Categories” introduced which include “Black Women”.

• The term 51% Black Owned only relates to Economic Interest and Voting Rights.

• A new concept of “New Entrant” introduced and does not relate to the Ownership element.

• Attorneys Point Recognition – Level 8 from 35 Points and Level 1 equals to 100 Points.

• Advocates Point Recognition – Level 8 from 15 Points and Level 1 equals to 50 Points.

• Attorneys are measured on all Elements.

• Advocates measured only on Skills Development (50 points).

• Specialised Scorecard equals total of 45 points measuring Procurement, Enterprise & Supplier Development only.

• Targets for executive, senior, middle, and junior management in the management control scorecard are based on the national and regional demographic representation of Black people.

• Compliance targets in the skills development scorecard are based on the national and regional demographic representation of Black people.

• There is an introduction of a Legal Sector Transformation Fund.

• The Supplier Development element removed, and focus is on Enterprise Development – Specialised Scorecard still focuses on Supplier Development.

• The element of Socio-Economic Development is completely removed from the Scorecard.

• Considering the definition of “Black People” under the B-BBEE Act, the Term “White” is used throughout the Legal B-BBEE Sector Codes of Good Practice

Technical Compliance Services are available to help members understand requirements under the Legal B-BBEE Sector Codes of Good Practice.