Built Environment Professionals dilemma!!!!!!!
Who has it wrong. The interpretation of ACSC code GG41287 issued 1 Dec 2017, Pg 390, pt. 3 - The measurement of Ownership in BEP's.
Here follows my summarized opinion - More than 50% - means a professional individual and other shareholder/s that are not professional in the 100% business ownership.
Owning more than 50%, provides the professional person with a controlling interest to influence the direction and policies of the company.(Predominantly white/foreign individuals)
This individual serves on the Executive management automatically, and as a result of the shareholding can also vote with the more than 50%.
The moment controlling shareholder shares with a non-professional 50% of the Executive management, the criteria as set out in above clause is then not met for a Built Environmental concern.
The result is, that black (non-professional) ownership is halved where applicable, based on this scenario.
Have an urgent chat with your verification agency, where Executive management points were given for meeting the 50% requirement (should have been less than 50%) by Black shareholder.
This opinion is based on engagement with many other persons, no one can convince me that the above interpretation is incorrect.
Article written for role players in the industry to solve the confusion.
Comments and thoughts are welcome.
Managing Director at BEE Right Not Left - Management Consultant
2 年I have had an awesome discussion with the relevant stakeholders excluding the verification agency. The more than 50% (professional) principle must be applied under the Ownership and Executive Management to not lose half the black ownership. Calculators and scorecards must be checked by all BEP. For your own safety.
Managing Director at BEE Right Not Left - Management Consultant
2 年More than 50% of the total ownership held in a Measured Entity as a BEP must be held by individuals who are both? - BEP is made up of individuals whom are professionally qualified in their specific discipline. More than 50% principle is expecting the collective BEProfessionals ownership to have more than 50% control regarding policies implementation as is expected of professional persons and most importantly, sign-off responsibility. Therefore, when an individual is the professional with more than 50% ownership and no one else, the requirement is not met. This remains an opinion, i am just encouraging, if you find yourself on the wrong side of the interpretation a new plan of action will be required. You are welcome to contact myself in this regard. [email protected]. CSCC & SANAS are going to respond when they are done.
Managing Director at BEE Right Not Left - Management Consultant
2 年After conducting much discussion with role players - SANAS/CSCC will have to inform the agencies of their finding.
Managing Director at BEE Right Not Left - Management Consultant
2 年Thx so much.