Knowing your B-BBEE reporting requirements
28 Mar 2018
In an attempt to monitor racial diversity and transformation, the Johannesburg Stock Exchange (“JSE”) amended its Listings Requirements, in conjunction with the adoption of the amendments proposed in terms of the King IV Report on Corporate Governance, to ensure that all listed entities annually disclose their compliance with Broad-Based Black Economic Empowerment Act, No 53 of 2003 (“B BBEE Act”) as guided by the requirements of the codes of good practice.
JSE listed companies, public entities and organs of state are required to annually submit their B-BBEE compliance reports to the B-BBEE Commission within 30 days of the approval of the entity’s audited financial statements or within 90 days of the end of the relevant financial year. Additionally, JSE companies will be required to make available the submitted compliance report on their website as well as issue a SENS announcement.
The compliance report should contain inter alia the following, (i) a letter of authority of the person submitting the compliance report; (ii) the percentage of black shareholding, number of directors/managers for each category, race classification, gender, age, location and disability indication; (iii) an indication of any dividends declared; (iv) the number of black persons trained per race classification, gender, age, location, disability indication, disability and value; (v) the number of all black owned EMEs/QSEs enterprise and supplier development entities assisted by the company and value of such contribution; and (vi) the number of black participants, race classification, gender, geographical location and value thereof from a socio-economic development perspective.
The B-BBEE Commission may conduct a site visit to verify the correctness of the information submitted in terms of the compliance report or initiate an investigation in respect of any non-compliance with the requirements of section 13G of the B-BBEE Act.
The amendments have been in effect from 19 June 2017, however, the additional B-BBEE reporting requirements will take effect from 1 April 2018. For more information on your company’s reporting requirements please contact us.
See also:(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)