Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Codes of Good Practice on Black Economic EmpowermentCode Series 000: Framework for Measuring Broad-Based Black Economic EmpowermentStatement 003 : Guidelines for Developing and Gazetting of Transformation Charters and Sector Codes3. Procedure for developing and gazetting of Sector Codes |
| 3.1) | The following principles apply to developing Sector Codes: |
| 3.1.1) | there must be common commercial and other characteristics within the entitles operating in the sector which would make it feasible to formulate a transformation charter subject to the proposed Sector Code; |
| 3.1.2) | the proposed Sector Code must fully address all the Elements in the Generic Scorecard; |
| 3.1.3) | the proposed Sector Code must use the same definitions in respect of all beneficiaries as those used In the Codes; |
| 3.1.4) | the proposed Sector Code must use the same calculation methodologies to measure compliance as those used In the Codes; |
| 3.1.5) | the proposed Sector Code may deviate from Targets and Weightings used in the Codes only where those deviations are justifiable based on sound economic principles, sectoral characteristics or empirical research; |
| 3.1.6) | the proposed Sector Code may introduce a new additional Element for measurement where such addition is justifiable based on sound economic principles, sectoral characteristics or empirical research; |
| 3.1.7) | the proposed Sector Code must clearly define its scope of application. |
| 3.2) | The representative body of a sector seeking to gazette a Sector Code under section 9 must: |
| 3.2.1) | apply in writing to the Minister; |
| 3.2.2) | indicate the process by which the Charter has been developed; and |
| 3.2.3) | provide evidence of compliance with section 12 of the Act. |
| 3.3) | The Minister must refuse an application under this paragraph 3 if the proposed Sector Code: |
| 3.3.1) | inadequately addresses any of the principles of any of the Elements referred to in the Generic Scorecard as referred to in paragraph 3.1.2; |
| 3.3.2) | contains deviations from the calculation methodologies applicable in measuring B-BBEE compliance as referred to in paragraph 3.1,4; |
| 3.3.3) | contains deviations in the definitions of beneficiaries of B-BBEE as referred to in paragraph 3.1.3; |
| 3.3.4) | contains inconsistencies in the Targets and Weightings referred to in paragraph 3.1.5 unless fully justified under that paragraph; or |
| 3.3.5) | contains inadequacies or a potential for ambiguity in defining the scope of the sector as referred to in paragraph 3.1.7. |
| 3.4) | If on receiving the documents referred to in paragraph 3.2, the Minister decides against adopting that proposed Sector Code, the Minister may: |
| 3.4.1) | refer the application back to the representative body for the sector; |
| 3.4.2) | refer the documents to the Advisory Council for further consideration or recommendations. |
| 3.5) | The Minister may issue a draft Sector Code for public comment, in terms of section 9(5) of the Act. |
| 3.6) | After considering the public comment, the Minister may gazette the Transformation Charter as a Sector Code under section 9 of the Act. |