Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesLegal Sector Code, 202420. Eligibility to Qualify as an ELE |
| 20.1. | For the purposes of measurement in terms of the LSC, an LSME shall qualify as an ELE based on the criteria set out below for both attorneys and advocates and will be based on the annual revenue. |
| 20.2. | Any LSME with a total annual revenue set out in the relevant categories in this LSC for attorneys and advocates, respectively, shall comply with the elements of the LSC scorecard. |
| 20.3. | The following tables set out the exempted legal entities: |
| • | Legal entities with between 1 and 3 partners constitute 95.07% of the total number of legal practices in South Africa. |
| • | Enhanced recognition referred to above means that an otherwise white or a majority white-owned ELE that is either B-BBEE level 4 or level 5 may enhance itself one level up if they implement at least one of the following three indicators, namely: |
| 1. | contribution to LSTF; or |
| 2. | training in specialised areas of law for black legal practitioners; or |
| 3. | any contribution towards the enterprise development element. |
| 20.4. | New Entrants |
| 20.4.1. | For the purposes of this LSC, an LSME shall constitute a new entrant and shall, for purposes of measurement, constitute a recently formed, constituted, established or incorporated law firm in practice for less than 3 (three) years or an advocate who has been in practice for less than 3 (three) years. |
| 20.4.2. | However, a new entrant does not include any newly formed, constituted, established or incorporated LSME in practice for less than 3 years which is merely a continuation or a breakaway of a pre-existing LSME or a newly established or incorporated law firm which is constituted established or incorporated by legal practitioners who have been in practice for a period of more than 3 (three) years. |
| 20.4.3. | An LSME that is a new entrant, unless it is black owned or a black advocate in which case it shall qualify as having a B-BBEE level in accordance with LSC 000 and 001, shall qualify as an automatic B-BBEE Level 4 LSME, in accordance with the provisions of this LSC. Consequently, in terms of this LSC, a new entrant shall qualify to be measured as an ELE. To qualify as a new entrant, the LSME must provide an independent confirmation of its status. |
| 20.4.4. | Despite the provisions of this paragraph 20.4, an LSME that is a new entrant shall be required to submit a QSE scorecard B-BBEE verification certificate when tendering for legal services with a value higher than R5 million (five million rand) but less than R25 million (twenty-five million rand). To the extent that the value of the legal services exceeds R25 million then, in that event, such an LSME shall be deemed to be a large enterprise and must submit a Large LSME B-BBEE verification certificate. |