The revised Broad Based Black Economic Empowerment Codes of good practice have triggered anxiety in corporate boardrooms. The implications of new legislation in terms of company ownership structure are worrying some entrepreneurs.
During a symposium in Pretoria last week, Transform SA Online was within an earshot of a discontented manager of a construction company with over a project order book of over R300 million.
“We are being forced to include a shareholder which will not add any value to our business. We are buckling under political pressure….It ludicrous,” the executive bemoaned.
With the new regulations, companies will be obliged take new owners on board to earn invaluable BBBEE points.
The Code of Good Practice legislation will come into effect from 1 May 2015. Currently companies are pulling out all the stops to ensure that they comply.
