Most Read Contributor in South Africa, September 2016
The controversial so-called trumping provision of the
Broad-Based Black Economic Empowerment Amendment Act 46 of 2013
(the "Amendment Act") has come into force and effect as
of 24 October 2015, following an announcement by the Minister of
Trade and Industry on 23 October 2015.
The trumping provision stipulates that in the event of any
conflict between the Broad-Based Black Economic Empowerment Act 53
of 2003 (the "BEE Act") and any other law in force
immediately prior to the date of commencement of the Amendment Act,
the BEE Act will prevail if the conflict relates to a matter dealt
with in the BEE Act. This means that, for example, to the extent
that any sector code is not aligned with the new Amended Codes of
Good Practice, all applicable entities under such sector will be
measured in terms of the Amended Codes of Good Practice.
Unfortunately, the reality is that that many, if not all,
"other pieces of legislation" have not to date been
aligned with the BEE Act (as was intended during the transitional
12-month period), thereby creating a significant amount of risk and
uncertainty. For instance, an interesting issue that must still be
decided is whether the BEE Act or the Mineral and Petroleum
Resources Development Act 28 of 2002 (and its accompany Mining
Charter) will govern BEE in the mining industry.
It is evident that all legislation pertaining to economic
transformation (including sector codes and charters) needs to be
aligned with the BEE Act so as to ensure that a coherent framework
is applicable to the industry, failing which measured entities will
need to prepare and avail themselves for implementing new BEE
structures. Not only may this be costly, but it may also have an
impact on such entities' ability to obtain certain licences and
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
In our article " Characteristics of the Commercial Agency Law of the United Arab Emirates" published with Mondaq on 27.09.2016, we outlined the general applicability of the UAE Commercial Agency Law (Federal Law No. 18 of 1981 including its amendments).
Ministerial Decision No. 124/2016 came into force on 27 April 2016 and, in summary, prohibits the registration of company names that are a proper noun or the collective name of a tribe with the letters "Al" preceding it...
It is without doubt that in-house collection offers some advantages because it can move swiftly to recover small debts.
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).