Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesLegal Sector Code, 202437. The Legal Sector Transformation Fund |
| 37.1. | The stakeholders hereby agree to establish an LSTF. |
| 37.2. | The objective of the LSTF is to provide financial assistance and support to black legal practitioners, especially black women and other black people from designated groups. |
| 37.3. | The LSTF shall be administered by the Charter Council which may outsource the management of the LSTF to any entity with the requisite skills, experience and capacity subject to such entity complying with the Charter Council’s directives and the aims and objectives of this LSC. |
| 37.4. | The Charter Council shall ensure that costs for the administration and management of the LSTF do not exceed 5% (five) per cent of the total income of the LSTF in any financial year. |
| 37.5. | The Charter Council will limit rollover for investment purposes and will require that any rollover is not effected for a period exceeding 3 (three) years. |
| 37.6. | The Charter Council shall ensure that annual financial statements of the LSTF are audited in accordance with prevailing, recognized accounting standards. Such financial statements shall be made available to stakeholders in the legal sector. |
| 37.7. | The LSTF will be utilised for Skills Development and Enterprise and Supplier Development initiatives including, but not limited to, the following: |
| 37.7.1. | Funding of black-owned LSMEs, especially new entrants, including the provision of technical equipment, library facilities, office rental and training in specialised areas of law; |
| 37.7.2. | Providing financial assistance and support to black candidate legal practitioners during their pupillage, including the giving of stipends; |
| 37.7.3. | providing financial assistance, training and support to black junior advocates, including subsidising their rental and/or membership fees of voluntary associations or subscription fees; |
| 37.7.4. | providing financial assistance to a black junior advocate or attorney to acquire and develop skills in specialised areas of law through training and other initiatives; and |
| 37.7.5. | providing financial assistance and support to black women attorneys and advocates during maternity leave from their law firms and chambers, respectively. |
| 37.8. | The Charter Council shall, upon its establishment, develop a policy and criteria for the access of intended beneficiaries of the LSTF and the quantum of support as well as the manner of disbursement. Such policy shall be drafted after consultation with stakeholders in the legal profession and the Charter Council shall ensure that the criteria are based on the guidelines and criteria set out in the compliance monitoring framework issued from time to time by the DTIC or the B-BBEE Commission. |
| 37.9. | The LSTF shall also contribute to the funding of the Charter Council. |