Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)Sector CodesLegal Sector Code, 202426. Key measurement principles relating to management control |
| 26.1. | A key consideration in the allocation of weighting points, is the need for more equitable representation of black legal practitioners in key decision-making categories of management and participating in profits of the LSME. |
| 26.2. | An LSME shall only receive points for its achievement towards the targets for participation of black legal practitioners and black women legal practitioners at board, executive management, middle management and junior management levels. |
| 26.3. | The compliance targets for executive, senior, middle and junior management in the management control scorecard are based on the national and regional demographic representation of black people as defined in the Employment Equity Act No. 55 of 1998 and Regulations, as amended, from time to time. |
| 26.4. | In determining an LSME score, the targets should be further broken down into specific criteria according to the different race sub-groups within the definition of black in accordance with the Employment Equity Act and Regulations – African, Coloured and Indian – on an equitable demographic representation and weighted accordingly. |
| 26.5. | Notwithstanding the provisions of paragraph 26.3, the targets for different race sub-groups in terms of the Employment Equity Act and Regulations as referred to in paragraph 26.3, are not applicable to the QSE management control scorecard. |
| 26.6. | Based on the nature of QSEs’ management structures, the categories of management have been reduced and exclude the requirement that directors should be equity directors to obtain points. |
| 26.7. | An LSME measured in terms of the management control scorecard must provide the following documentary information for the purpose of measuring management control: |
| 26.7.1. | employment agreements and/or letters of engagement; and |
| 26.7.2. | any other acceptable evidence that is deemed suitable to support the existence of a management level role in the LSME. |