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 you’ll learn
- How can trusts be used for ownership points.
- What are the requirements for trusts in terms of B-BBEE.
- How do I use a constitution to enable activities of a trust.
- How do I ensure compliance for my trust strucutre.
Course Content
- Introduction –> 2 lectures • 6min.
- Trust requirements –> 8 lectures • 32min.
- Conclusion –> 1 lecture • 6min.
Requirements
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.