Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Chartered Accountancy Charter

Section A: Background

6. Sector Code Development Process
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1.The process commenced with discussions with organs of state in 2004/2005. This was followed by discussions at a board level of SAICA.

 

2.Following the decision in principle to draw up a Sector Code, all major shareholders (as listed in appendix 3) were consulted, through regional structures, where appropriate, within the profession. Agreement was reached on developing a Sector Code specifically for the CA profession.

 

3.The first step was to make the decision public, by statements in the press as well as in Accountancy SA and Communiquѐ and communicating with parties concerned via e-mail.

 

4.A meeting was set up at which the initiators of the Sector Code process proposed the setting of a mandate for a charter forum and determining the charter forum's overall objectives.

 

5.This was again followed up by a consultation process with the relevant stakeholders.

 

6.The next step was the formal agreement to set up a B-BBEE negotiation forum. All major stakeholders who attended the meeting were requested to put forward names of representatives to drive the Sector Code development process. It should be noted that these representatives, who were nominated by the relevant stakeholders, are senior and influential members of their organisations.

 

7.At the first meeting of the newly constituted B-BBEE Negotiation Forum a chairman and vice-chairman were elected. It was further agreed that SAICA would take on all the secretarial responsibilities of this process, to ensure that is was administered from a central point and in a co-ordinated manner.

 

8.In addition to the B-BBEE Negotiation Forum working groups, referred to as task teams, were set up to draft sections and put forward recommendations. Task teams, consisting of experienced members, were constituted for direct empowerment, indirect empowerment, human resource development, and definitions.

 

9.A steering committee was appointed to consolidate the work of the task teams and prepare the documentation for the B-BBEE Negotiation Forum meetings. Steering Committee meetings were held regularly, sometimes every two weeks, and the B-BBEE Negotiation Forum (usually) met on a monthly basis. Minutes of all the meetings are available from SAICA for inspection.

 

10.Numerous drafts of the Sector Code were produced, each draft being subject to comprehensive consultation and discussions.

 

11.A website was set up for the CA Sector Code, calling for comment from the public at large at critical times in the process.

 

12.Country-wide meetings and consultation have taken place with the relevant stakeholders.

 

13.A DVD, and TV coverage, has also been prepared with regard to the CA Sector Code.