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

Sector Codes

Legal Sector Code, 2024

1. Background
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Broad-Based Black Economic Empowerment Legal Sector Code of Good Practice in terms of Section 9(1) of the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013

 

1.1. The history of apartheid in South Africa is well documented. The apartheid legislation, policies and practices have created inequalities and injustice in the socio-economic and political landscape of the country. Such legislation, policies and practices have created high levels of poverty amongst black people and resulted in racial inequalities in South Africa. Such policies and legislation were designed to, and succeeded in, excluding black people from meaningful participation in the economy of the country. The fundamental objective of apartheid legislation, policies and practices was to ensure that black people, who constitute the majority of the people in the Republic of South Africa, should only provide unskilled labour. The shortage of skills and expertise among black people is a consequence of such policies. The consequences of apartheid still prevail in the democratic era with the economy largely owned and controlled by whites while black people have a minimal role therein.

 

1.2. In April 1994, the changes in the political dispensation culminated in the adoption and promulgation of the new Constitution (“the Constitution”) of the Republic of South Africa and the establishment of democracy. However, the legacy of apartheid requires a robust legislative intervention. The adoption of the Constitution assisted in the eradication of the apartheid laws and promoted the important principles of democracy and values, including recognising the human dignity of the majority of the people in the country.

 

1.3. The right of all South Africans to fully participate in the economy of South Africa is enshrined in the Constitution. This is not only a fundamental right, but it is also an important tool designed to assist growth of the economy of the country. It is in this context that the government of the Republic of South Africa promulgated the Broad-Based Black Economic Empowerment Act No. 53 of 2003, as amended, to address the imbalances created by apartheid and to promote sociopolitical equality and, in the process, facilitate equal participation in the economy of the country.

 

1.4. Members of the legal profession do not have a sector code to guide them in addressing imbalances and inequality within the legal profession. To date, reliance has been placed on the principles of the Codes of Good Practice issued under Government Gazette No: 36928 of May 2015 (“the Generic Codes”) as amended from time to time, which are, as the name suggests, inherently generic applying broadly to business entities and not addressing the unique nature of the legal profession as an economic sector. The Legal Sector Code (“LSC”) is therefore intended to address this gap. There are sufficient common commercial and professional characteristics in the legal sector to make it feasible and appropriate to develop a sector-specific code to address the unique characteristics of the legal sector.