B-BBEE Backlash Forces Withdrawal of Changes
In what must be regarded as a big win for business, Minister Rob Davies scrapped a plan that was announced on the 5th May which had the potential to scupper new investment deals. In essence it had been proposed that companies would get fewer black economic empowerments points if their non-white shareholders were legal entities other than individuals or black-owned businesses.
The official notice issued on 5th May had created a lot of uncertainty amongst investors and companies as regards timing. Public pressure forced Minister Davies to reconsider. We will keep you advised of any further developments in this regard.
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