May 141 min read

PRACTICE NOTE ON OWNERSHIP FOR COLLECTIVE ENTERPRISES

On May 18, 2021, the Minister of Trade, Industry and Competition published a Practice Note under Gazette #44591 to clarify the definition of ownership by Collective Enterprises under the B-BBEE Act. This notice outlines how various entities, such as Broad-Based Schemes, Employee Share Ownership Programmes, Trade Unions, Not-for-Profit Companies, Co-operatives, and Trusts, should be interpreted within the B-BBEE Codes of Good Practice.

In terms of the B-BBEE Act, on 18th May 2021, a Practice Note under Gazette #44591 was published by the Minister of Trade Industry & Competition. The notice outlines the rules for discretionary Collective Enterprises. The purpose is to clarify how Ownership by Collective Enterprises is defined as Broad-Based Schemes, Employee Share Ownership Programmes, Trade Unions, Not for Profit Companies, Co-operatives, Trusts should be interpreted under the B-BBEE Codes of Good Practice.

Ownership Services are available to assist members with Ownership structures.