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Follow Sekunjalo's ownership example to prove your BBBEE rating is based on true transformation

by , 10 April 2013
Some scoff at the idea of black ownership as a form of transformation. They say it's just a case of hiring figureheads with no real power. But there's a way to prove the ownership level of your BBBEE rating is based on true transformation - all you need to do is pay attention to your income differential statement!

 
Sekunjalo Independent Media Consortium and the Board of INM announced yesterday that they've entered into a binding agreement for R2 billion, says Fin24.
 
And ownership is a crucial aspect of Broad-Based Black Economic Empowerment.
 
So much so that if your percentage of black shareholders is above 50%, you automatically qualify for a Level 3 BBBEE certificate, says FSP Business.
 
Now, proposed changes to the BBBEE codes of good practice have procurement experts estimating that companies without black ownership will drop at least four status levels, says Smart Procurement.
 
That's why Sekunjalo's deal with INM is so important.
 
Because one of the main reasons for the deal is that it'll increase black shareholding in the media sector in South Africa.
 
Does your ownership comply with the new codes of good practice for Broad-Based Black Economic Empowerment?
 
In particular, there'll be strong emphasis on the inclusion of broad-based groupings from both urban and rural communities.
 
This is a great strategy ahead of the expected changes to the new codes of good practice for BBBEE.
 
Especially as Sekunjalo believes it will be returning an important asset to South African ownership, and support investment in the asset so that the media can play an important role in the economic and social development of South Africa and sub Saharan Africa, says Fin24
 
This form of true transformation is the very backbone of BBBEE.
 
Because 'From the time of inception, broad-based black economic empowerment and employment equity legislation were put in place to drive meaningful transformation in a changing South African business environment,' says SkillsPortal.
 
And the best way to ensure meaningful transformation takes place is to make sure your company's policies are in line with this new business mindset.
 
That's why any representation made by a company about its BBBEE compliance must be supported by suitable evidence or documentation, says EconoBEE.  
 
Income differential statement: The only way to prove your BBBEE policies aren't a form of discrimination…
 
Your company's income differential statement shows the income differential between employees of different races and genders in the same occupational levels and explains any perceived differences, says The Labour Law for Managers Loose Leaf Service.
 
So make sure you've put proper measures in place to improve your BBBEE rating based on ownership, and you won't just be complying with the new codes of good practice for BBBEE, you can also be assured of true transformation in your company!
 


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