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Source domain: bbbeecommission.co.za
Collected on 5 August 2026
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What this means
This is a Government Gazette practice note and explanatory memorandum issued under the B-BBEE Act. It clarifies how discretionary collective enterprises, including employee ownership schemes and broad-based schemes, should be interpreted for B-BBEE ownership purposes. It says that defined classes of black beneficiaries may satisfy ownership requirements without being individually identified, provided the collective enterprise complies with the Practice Note.
What this document offers
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B-BBEE ownership guidanceOngoing
Practice Note B-BBEE Act Rules for Discretionary Collective Enterprises
The Department makes available an interpretation of the B-BBEE Codes explaining when discretionary collective ownership structures, including broad-based schemes, employee ownership programmes, trade unions, non-profit companies, co-operatives and trusts, can satisfy B-BBEE ownership provisions.
- Who it is for
- Collective enterprises and firms applying the B-BBEE Codes
- How to act on it
- Read and apply the Practice Note's interpretation and compliance provisions to the relevant collective ownership structure.
Show the line this came from
The purpose of this Practice Note is to provide clarity on how ownership by entities such as Broad- Based Schemes, Employee Share Ownership Programmes, Trade Unions, Not for Profit Companies, Co-operatives, Trusts (together “Collective Enterprises”) should be interpreted under the B-BBEE Codes of Good Practice (the “Codes).
Facts
Reference
NO. 428
Key Takeaways
- Government Gazette No. 44591
- Published 18 May 2021
- Department of Trade, Industry and Competition General Notice No. 428
- B-BBEE Act No 53 of 2003
- Practice Note on Rules for Discretionary Collective Enterprises
- Clarification of ownership through broad-based schemes, employee share ownership programmes, trade unions, not-for-profit companies, co-operatives and trusts
- Defined classes of black beneficiaries can satisfy ownership provisions if the collective enterprise complies with the Practice Note
- Broad-Based Black Economic Empowerment Commission
- Department of Trade, Industry and Competition
- Broad- Based Schemes
- Employee Share Ownership Programmes
- Trade Unions
- Not for Profit Companies
- Co-operatives
- Trusts
- Collective Enterprises