Entries by tusker-admin

Preference shares in BEE deals

Preference shares in BEE financing: some of the pros and cons. When the framers of the BEE Codes wrote paragraph 3.14 of Code 100 (the ownership section) they opened a door to creative schemes, especially when they wrote “An Equity Instrument carrying Preferential Rights that have the characteristics of debt, regardless of whether the debt […]

Get your BEE ownership sorted in 2019

Sometime in the next 12 months your BEE certificate will come up for renewal. In the month or two before that date, your verification agent will be working to prove what you say is true and give you the BEE points you deserve. In the months before that, you have the time to spend the […]

The gift of BEE

The time of the year associated with gift giving is upon us. Many different ways exist for giving and sharing presents but one often encountered in coffee groups, workplaces and other social gatherings is a Secret Santa, where people are expected to buy something for someone else for a certain value and to receive another […]

Trusts in BEE deals

Many companies use trusts as part of their BEE ownership structures, but these are often abused and as a result the BEE Commission does not react well to structures that include trusts. In this article we explore the origin of trusts, the nature of discretionary trusts (and related problems in terms of BEE ownership requirements), […]

Stakeholders > shareholders?

Who do you serve? The journey of a business leader is often about ego. “I founded this business”, “I closed that deal” or “I employ 350 people”. This stuff may feel true but it turns people off. Real leaders leave their ego at the door. Real leaders serve others through their business; they realise that […]

Entrepreneurial success, Gamblers’ ruin and partial diversification

As an entrepreneurial business grows, its shareholders face a continual choice around how much of profits should be reinvested. Given entrepreneurial optimism, early or continued success and a while to go before retirement, most re-invest profits continuously for years, if not decades. The result (if things go well) is that successful founder-shareholders end up with […]

Are BEE-share schemes discriminatory to your white staff?

Solidarity, a 120-year old trade union with 140 000+ mostly white members, has engaged in a legal strike against the Sasol Khanyisa (BEE) share scheme which it claims is discriminating against white Sasol employees. Context: the rise and fall Sasol Inzalo: Khanyisa is Sasol’s second attempt at BEE. The Sasol Inzalo Scheme was launched about […]

Why do a BEE ownership deal?

There are 2 reasons to do a BEE ownership deal: To contribute towards making South Africa a more stable, racially inclusive economy. To grow your South African business (the reason most BEE deals are really done). So how does a BEE deal help you grow? As a recap, the BEE Act is effectively a set […]