Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesLegal Sector Code, 202417. Discounting Principle Effect |
| 17.1. | A QSE or Large LSME that fails to meet the 40% sub-minimum requirement for any or a combination of the priority elements in terms of paragraph 15 above, will have their B-BBEE status level discounted by one level down. |
| 17.2. | The discounted level will be recorded and be the applicable status level for such an LSME. |
| 17.3. | Notwithstanding the provisions of paragraph 17.1, the actual points by an LSME below the 40% sub-minimum will be recognised. |