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Statement 000, Clause 7 of the General Amended B-BBEE Codes of Good Practice makes the following references:

“7. Eligibility of Joint Ventures and Start-up Enterprises

7.1 The measurement of Unincorporated Joint Ventures will be done as follows:

7.2 Unincorporated Joint Ventures are required to compile a consolidated verification certificate. A consolidated verification certificate will consolidate the verified compliance data of joint venture partners, in accordance with paragraph 7.3 below, as if those Measured Entities were a single Measured Entity.

7.3 The consolidation of compliance data shall be based on a weighting in accordance with the joint venture agreement relevant to the specific joint venture. Therefore, should two companies enter into an Unincorporated Joint Venture, their respective scores in terms of the relevant Code of Good Practice will be weighted according to their proportionate share in the joint venture and added together for a combined score out of 100.

7.3.1. Should a company qualify in terms of the Qualifying Small Enterprise Scorecard, its B-BBEE score out of 100 must be used to calculate the consolidated score.

7.3.2. 51% Black Owned EMEs and 51% Black Owned QSEs will qualify for a score of 95 points, while 100% Black Owned EMEs and 100% Black Owned QSEs will qualify for a score of 100 Points.

7.3.3. EME’s other than those in paragraph 7.3.2 above will qualify for a score of 85 Points.

7.3.4. The JV B-BBEE Certificate is valid for 12 Months and only applicable to a specific Project.

7.3.5. Notwithstanding the B-BBEE Status Level attributed to the JV in terms of the above mechanism, the black Ownership of the respective partners may be flowed through to the JV in proportion with the respective JV partners’ economic interest and voting rights in the JV as determined by the JV agreement.

7.4 Start-up Enterprises are deemed to have qualifying B-BBEE Status in accordance with the principles of paragraph 4 of this Statement.

7.5 Despite paragraph 7.4, a Start-up Enterprise may be measured in terms of the QSE scorecard or the Generic scorecard should they choose to.

7.6 Despite paragraph 7.4, a Start-up Enterprise must submit a QSE scorecard when tendering for any contract, or seeking any other economic activity covered by Section 10 of the Act, with a value higher than R10 million but less than R50 million. For contracts of R50 million or more they should submit the Generic scorecard. The preparation of such scorecards must use annualised data.”

An Incorporated Joint Venture means establishing a new company with representative shareholders to obtain a B-BBEE status. As per Schedule 1 of the Amended General B-BBEE Codes of Good Practice, an Unincorporated Joint Venture means a joint venture between two or more Measured Entities affected by agreement without incorporation. Requirements between each Sector Code may differ.

Technical Compliance Services are available to help members understand requirements for Unincorporated Joint Ventures.


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