New Compliance Targets announced in terms of the Broad-Based Black Economic Empowerment Act

As readers may be aware, the Minister of Trade and Industry is empowered by the provisions of section 9(1) of the Broad- Based Black Economic Empowerment Act, 53 of 2003 (“the Act”), to issue Codes of Good Practice to facilitate the further interpretation and understanding of the Act. The first set of such Codes was issued and published in the Government Gazette on 9 February 2007.

Section 9(3) of the Act requires, furthermore, that the Codes of Good Practice issued in terms of section 9(1) specify targets consistent with the underlying objectives of the Act as well as the period within which those targets must be achieved.

The 0 – 5 year empowerment targets, as outlined in the different Statements of the Codes of Good Practice issued in 2007, were applicable for the five year period ending 8 February 2012. With effect from 9 February 2012, however, the 0 – 6 year targets have come into operation. It should nevertheless be noted that the year empowerment targets will still apply in respect of those measured entities having a Measurement Date prior to 9 February 2012. Those measured entities having a post-9 February 2012 Measurement Date will now be required to comply with the 0 – 6 year targets.

The implementation process will be closely monitored by the Department of Trade and Industry to promote and safeguard the objectives and imperative of Broad- Based Black Economic Empowerment.

Estate agency enterprises are urged, in their own best interests, fully to acquaint themselves with the provisions Codes of Good Practice which may be accessed from the dti website at www.thedti.gov.za.

Courtesy: The EAAB - Estate Agency Affairs Board

“Redressing the Past, Building the Future and Guiding the Real Estate Business towards Professionalism”