OF TRANSFORMING INTEREST | STATEMENT 102 | CONVENTIONAL VS UNCONVENTIONAL

The Ownership element is possibly the most contentious component of the B-BBEE Scorecard.

Apart from meeting the Ownership Scorecard requirements, a transaction must make good business sense. Conventional Ownership transactions are the sale of shares directly to ‘Black’ People or indirectly through ‘Black’-owned businesses. However, conventional does not always make good business sense. The Ownership Scorecard considers this. Thus, it allows for the recognition of Ownership through alternate avenues. Enter Statement 102 | Sale of Assets, Equity Instruments and Other Businesses in the Generic Codes of Good Practice (Codes), whereby an organisation entering such a transaction is referred to as the 'Seller'. Read more ...