Entries by tusker-admin

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 […]

Couple face criminal charges due to fronting.

In a classic case of fronting, the owners of a panel-beating shop could face criminal charges, blacklisting by Treasury from getting government tenders and an investigation by the Companies and Intellectual Property Commission for violating the Close Corporations Act. The B-BBEE Commission found that Willie and Petronella Saunders were trying to divert profits earned by […]

The ‘least-worst’ alternative

We recently met with a large-Ngo (>200K members), whose mandate means that they are clearly and outwardly opposed to BEE ownership. This is primarily because they regard it as government interference in a free market. We presented the Tusker structure as a way for their members, who might be opposed to BEE ownership because of […]