Legal Sector Code Gets Green Light

Trade, Industry, and Competition Minister Parks Tau has given the green light to the Legal Sector Code under section 9(1) of the B-BBEE Act, which aims to expedite transformation within the legal sector.

“This administration is dedicated to speeding up transformation, as guided by the preamble of the South African Constitution, which underscores the need to address past injustices. This commitment is reflected in the Government of National Unity’s (GNU) statement of intent,” Tau stated.

The process has paved the way for the sector to achieve its Broad-based Black Economic Empowerment (B-BBEE) objectives of the following:

an ownership target of 50% and black women ownership of 25% over 5 years.
a management control (executive and board participation) target of 50% representation of black practitioners and a target of 25% for black women practitioners, particularly as equity partners and associates.
a skills development target of 3.5% expenditure on training programmes for black candidates. The aim is also to ensure training in specialised skills for black legal practitioners, candidate legal practitioners, candidate legal practitioners and black junior advocates within the following designated categories: black women, black youth, black people with disabilities and black people from rural areas.
a procurement target of 60% by the private sector, and there is a target of 80 % to be achieved through the specialised procurement scorecard applicable to the public sector. This will ensure fair and equitable access to specialised areas of law and complex matters when the state procures legal services from black Legal Sector Measured Entities (LSMEs) and ensure the sustainability of LSMEs.

With the recent approval of the Legal Sector Code, legal professionals and firms must stay ahead of these transformative changes. Our team is ready to assist you in understanding and implementing the new regulations to ensure your practice remains compliant and competitive.