B-BBEE rules for trusts

B-BBEE rules for trusts free download

Understand the requirements in terms of trusts

Under the B-BBEE Act, a Trust, whether it be an ESOP or education trust,  can be used to facilitate ownership by employees, communities or other similar collective groups.

- What to look out for in an empowerment trust

- When is a trust better than other ownership structures

- How to ensure compliance with the trust

- B-BBEE specific requirements

Trusts/BBOS/ESOPs are a popular method of extending black ownership. They are covered by Annexures 100 B to D (statement 100)

•We will cover

•BEE Commissioner

•Each Annexure

•Verification

•Tips

•We are not going to cover how to write a trust deed or the process of getting the master to issue the Letter of Authority

The Broad-Based Black Economic Empowerment (B-BBEE) Commission declared that the vast majority of transactions involving broad-based trusts are not compliant with the law and do not constitute genuine and effective black ownership.

•Patel blocks this 18 May 2021 (gazette number 44591)

•BBOS – ROAD-BASED OWNERSHIP SCHEMES

•ESOP - EMPLOYEE SHARE OWNERSHIP PROGRAMMES

•LOA – Letter of authority

•Master – Master of the High Court

Lawyers complain that the offices of the Master of the High Court are increasingly dysfunctional. As a result, people are unable to tie up deceased estates, set up or liquidate trusts, or appoint overseers of trusts and estates among other legal procedures.