The objectives of the Act are to facilitate and promote broad-based black economic empowerment by:
“Achieving a substantial change in the racial composition of ownership and management structures and in the skilled occupations of existing and new enterprises”. Substantial meaning a considerable or significant importance to how companies align their ownership meaning “state or fact of being an owner” and management structures meaning managerial levels towards empowering and uplifting black people into accessing skilled positions i.e. having the ability or proving their knowledge to perform their activities to becoming professionally qualified. The Codes of Good Practice Section 9 (1) of the BBBEE Act 2003 (Act No 53 of 2003) goes further in-depth on the measurement of ownership and management control.
Ownership: Ensuring participation of voting rights and economic interest held by black people, meaning direct participation (owning their own companies) or participation through: close corporations, co-operatives, trusts, ownership schemes, employee share schemes. Giving black people the right to decision making through voting rights, which drives change and taps into economic transformation i.e. allowing designated groups access into the economy and ensuring companies align to the EAP targets set by Stats SA. As the Codes of Good Practice Section 9 (1) of the BBBEE Act 2003 (Act No 53 of 2003) has made Ownership a priority element companies are encouraged to have black participation and involvement at all levels of business.
Management Control: Ensuring black people have representation and participation in companies at all levels i.e. board participation, other executive management, senior management, middle management, junior management also giving added bonus points for black females and employees with disabilities aligned to the Employment Equity Act and the EAP targets, and the BBBEE Act, The codes of Good Practice makes Skills Development a priority element , which creates substantial change in management and employment equity as you get bonus points for training unemployed black people and employing them within your organisation.
By introducing more black owned companies, certain existing companies that do not have black ownership as a priority element, feel they are not able to efficiently trade in the economy which in turns leads to certain companies fronting, however the BEE Commission is a body that is enforced by the BBBE Act, to monitor and regulate irregularities that may occur such as Fronting.
Please contact Deborah on 032 944 2488/admin@sabera.co.za or Kavisha on 010 03000 80/marketing@sabera.co.za for more information.
