CRITERIA FOR REGISTRATION
Empowerment buy-in set way lower than expected
At R25m — much lower than R100m expected by business — more transactions are likely to be registered
The threshold for the registration of all broad-based black economic empowerment (B-BBEE) transactions with the B-BBEE Commission has been set at R25m, much lower than the R100m expected by business. This means that more transactions than previously thought will have to be registered, thereby considerably broadening the ambit of authority of the commission, which is required to ensure that transactions comply with the B-BBEE Act. Trade and Industry Minister Rob Davies set the threshold, which will take effect immediately and also have retrospective application, in the government gazette on Friday. All major transactions concluded on or after October 24 2014, the date on which the B-BBEE Act was promulgated, but before June 9, when the notice was gazetted, will also have to be registered with the commission within 60 days if they equal or exceed the R25m threshold. Transactions concluded before October 24 2014 can be registered on a voluntary basis with the commission. Where there ar...