The implications of B-BBEE compliance were examined by the Mpumalanga High Court, which stressed that it is not merely a tick-box exercise.
The Mpumalanga High Court highlighted the importance of engaging in Broad-Based Black Economic Empowerment (B-BBEE) on genuine terms and in accordance with the Act's intent.
An acting judge commented that being B-BBEE compliant is not merely a “tick-box” exercise for a company in securing certain contracts if the person appointed is not empowered to also participate in the running of the company.
The matter landed before the Middelburg seat of the high court after Ntimeng Johannes, a shareholder of a company called Waterzone, was replaced with a black woman after being used for 14 years to uplift their B-BBEE status.
Johannes contested this and made a range of demands, including the provision of certain company records. The court dismissed several of his prayers but ordered that the company must provide him with certain documents.
