The Measurement of Ownership for Built Environment Professionals (BEPs) under the Amended Construction B-BBEE Sector Codes of Good Practice is quite unique. There is a focus on Registered Professionals and Shareholders being a part of Executive Management. Clause 3.1.3 of the Amended Construction B-BBEE Sector Codes of Good Practice states the following:
“3.1.3 The Measurement of Ownership in BEPs;
3.1.3.1 More than 50% of the total ownership held in a Measured Entity as a BEP must be held by individuals who are both:
3.1.3.1.1 Professionally registered with any of the statutory professional councils in the BEP environment in South Africa; and at the same time,
3.1.3.1.2 A member of the Executive Management of the Measured Entity;
3.1.3.2 Therefore when measuring the black ownership of any BEP, where the measured entity does not meet the requirements of 3.1.3.1 above, only 50% of the black ownership of those owners who do not meet the requirement of 3.1.3.1 may be included in the total measurement of black ownership in the measured entity.
3.1.3.3 For the avoidance of doubt, Executive Management in this context is defined as “Top
Management” in terms of the Employment Equity Regulations and include the ‘Executive Directors’ and ‘Other Executive Management’ of the Measured Entity.
3.1.3.4 Where the ownership of a BEP is held by a holding company, the ownership in the holding company must comply with the provisions of 3.1.3.1, for the black ownership in the measured entity to be recognised, otherwise 3.1.3.2 will apply.
3.1.3.5 In addition, where the measured entity does not meet the requirement of 3.1.3.1, the
measured entity does not qualify for automatic enhancement in terms of Clauses 4.2.3, 4.2.4, and 5.3.2. nor will it qualify for bonus points in 2.4 of the ownership scorecard.”
Technical Compliance Services are available to guide members in understanding these requirements.