The Broad-Based Black Economic Empowerment Amendment Act, 46 of 2013 (“the Amendment Act”) came into effect on 24 October 2014.

FRONTING DEFINED: The Amendment Act introduces a broad definition of “fronting practice” which essentially is a transaction, arrangement or other act that directly or indirectly undermines or frustrates the achievement of the objectives or the implementation of any of the provisions of the Broad-Based Black Economic Empowerment Act 53 of 2003 (“the BEE Act”).

OFFENCES AND PENALTIES: The Amendment Act criminalises fronting and any person convicted of an offence in terms of the BEE Act may be liable to a fine or a prison sentence of up to 10 years; or in the case of a juristic person, a fine of up to 10% of its annual turnover. Further, any person convicted of an offence in terms of the BEE Act may not for a period of 10 years from the date of conviction, contract or transact any business with any organ of state or public entity and will be registered in a register of tender defaulters with the National Treasury. The Amendment Act furthermore creates an offence for individuals who do not take proactive steps to ensure that fronting is not taking place in any ventures in which he or she may be involved.

Meise Nkaiseng Attorneys advises and assists a broad spectrum of corporate clients, including EME’s, QSE’s and large enterprises, with their B-BBEE structures and requirements. We were awarded the PMR Africa Diamond Arrow Award for ”best law firm” (Business Sector) in the Sedibeng Region for three years in a row (2018, 2019 and 2020).

In 2003 the Broad-Based Black Economic Empowerment Act 53 of 2003 (the BEE Act) was introduced to address the inequalities suffered by black South African citizens as a result of the apartheid regime.

The aim of BEE is to increase the participation of black people in the management, ownership and control of South Africa’s economy by measuring the economic involvement of black people over the following 5 empowerment elements:

(i) Ownership
(ii) Management control
(iii) Skills development
(iv) Enterprise and supplier development
(v) Socio-economic development

The BEE Codes classify entities based on their annual turnover:

• entities with a turnover of less than R10 million are called exempted micro enterprises (EME’s)
• entities with a turnover of more than R10 million, but less than R50 million are called qualifying small enterprises (QSE’s)
• entities with an annual turnover of more than R50 million are called large enterprises.

If an entity wants to do business with the government or a parastatal, it must comply with the BEE Codes in order to qualify for licenses, quotas, tenders or other permissions that are to be issued or awarded.

In order to become BEE compliant, the relevant entity will have to be audited, either partially or fully, by a verification agency to determine its BEE status at that time. During the BEE verification process, the entity has to submit physical proof of activity, spending and contributions to the five elements of empowerment.

Meise Nkaiseng Attorneys advises and assists a broad spectrum of corporate clients, including EME’s, QSE’s and large enterprises, with their B-BBEE structures and requirements.
We were awarded the PMR Africa Diamond Arrow Award for ”best law firm” (Business Sector) in the Sedibeng Region for three years in a row (2018, 2019 and 2020).

The key skills are:
1. a complete and thorough understanding of company law, including the New Company’s Act, 2008; the Competition Act 1998, the Consumer Protection Act, 2008 and the National Credit Act, 2005, as well as in depth knowledge of business entities; and
2. knowledge and experience of business and how specific commercial transactions will be affected by the legislation mentioned above, as well as the ordinary scope and course of business of the company in general.

Meise Nkaiseng Attorneys advises and assists a broad spectrum of corporate clients, including EME’s, QSE’s, large corporates and multi-national companies with their corporate and commercial law requirements throughout South Africa. We were awarded the PMR Africa Diamond Arrow Award for ”best law firm” (Business Sector) in the Sedibeng Region for three years in a row (2018, 2019 and 2020).

Corporate and commercial law involves all aspects of company and business law, including a thorough understanding of how companies operate and function. An experienced corporate attorney is expected to be a skilled negotiator and draftsman of contracts.

As corporate attorneys, Meise Nkaiseng Attorneys will know how to best utilise company and business law concepts to structure companies to achieve their corporate structure and business operations objectives.

We can assist you to draft, alternatively review and revise, your company’s Memorandum of Incorporation (MOI) and Shareholders Agreements. Once this is completed we can advise your company on how any change of ownership will affect movable and immovable property, and can also give advice on labour matters.

Meise Nkaiseng Attorneys advises and assists a broad spectrum of corporate clients, including Emerging Micro Enterprises, Qualifying Small Enterprises, large corporates and multi-national companies with their corporate and commercial law requirements throughout South Africa.

Meise Nkaiseng Attorneys assists and represents a broad spectrum of claimants with their claims against the Road Accident Fund throughout South Africa, and were awarded the PMR Africa Diamond Arrow Award for ”best law firm” (Business Sector) in the Sedibeng Region for three years in a row (2018, 2019 and 2020).