Ownership is therefore a critical component in B-BBEE planning. The following (with specific reference to Black Designated Groups) may not directly affect Net Value, but should be considered to earn valuable points on the B-BBEE scorecard.
(a) exercisable voting rights of Black people (and Black Women) in a Measured Entity;
(b) economic interest in the Measured Entity to which Black people (and Black women) are entitled; and
(c) realisation points for the Net Value component.
Apart from earning points for Economic Interest as referred to above, the Economic Interest of any of the following Black natural people in the Measured Entity will also earn points on the scorecard:
For Black New Entrants a further 2 points can be earned under Economic Interest.
To understand how points can be earned for Black Designated Groups, it is important to know what counts under Black Designated Groups.
Black Designated Groups include the following:
It should be easy enough to determine whether a Black person falls under any of the 5 classifications above at the date of Measurement, i.e. at the time the Measured Entity is being audited to obtain their B-BBEE certificate. A 35-year-old person, for example, can use his/her identification document to confirm that he/she is classified as Youth in terms of the National Youth Commission Act.
What if the same person still holds rights of Ownership in the Measured Entity for the next verification period? They will then be 36 and will not be seen as Youth in terms of the National Youth Commission Act. Will the Measured Entity still be able to claim points for Designated Black Groups?
A determining factor in establishing whether an individual falls within any of the Black Designated Group categories with reference to the Measured Entity will be the transaction date or date of purchase of the rights of ownership. The answer to the question pertaining to the 36-year-old in the example will then be ‘yes’ (subject to the fact that Rights of Ownership were obtained when the 36 -year old was youth as in terms of the National Youth Commission Act). The Measured Entity can still claim points under Black Designated Groups as the Measurement date is not the deciding factor for awarding these points.
As the industry leaders, SERR Synergy assists business owners with B-BBEE compliance matters and the implementation of a workable B-BBEE strategy.
About the author: Audrey Cloete obtained her LLB degree from the North-West University Potchefstroom. After 7 years in legal practise, she changed career paths by entering the corporate environment in 2009. Audrey joined SERR Synergy in 2015 where she currently works as the National Verification Manager.
 Codes of Good Practice on Broad-Based Black Economic Empowerment, GG 38765 6 May 2015
 GG 39378, 6 November 2015
© 2018 SERR Synergy. All Rights Reserved.
This event is closed for SERR employees only.
YES programme participation can assist qualifying businesses to enhance their overall B-BBEE status with up to 2 levels.