In short, yes.
According to the B-BBEE Act, including relevant legislation, the rule of “once empowered, always empowered” determines that a company is permitted to recognise a portion of black (as defined by the applicable Act) shareholding after the sale or loss of shares held by black participants.
There are, however, a few requirements which a company must first comply with:
- The applicable B-BBEE shareholding was held for at least 3 (three) years;
- Transformation regarding the B-BBEE recognition level has taken place within the company from the period that the shareholders entered the company to the exit period;
- Net value regarding any outstanding debt towards the shares held at the period of entry and by the date of exit, had to be created as per the time frame of the graduation factor.
Black shareholding claims arising from the “once empowered, always empowered” rule cannot contribute over 40% of the score on the Ownership scorecard. It is also important to remember that the period over which continued recognition points may be claimed cannot exceed the period over which the shares were held before the sale or loss thereof.
Please note that the applicable documents will be required during the verification process to substantiate the claim of continued recognition scoring.
Should you need advice or assistance, do not hesitate to contact your SEESA BEE representative. Alternatively, visit our website to see how SEESA can help your business.
To find out how SEESA can help your business visit our website for more:
#TeamSEESA
