If the measured entity implements B-BBEE Initiativethey need to ensure that the initiative does not constitute front practice. According to the B-BBEE Act, the definition of a “Front Practice” It means a transaction, arrangement, or other act that directly or indirectly undermines or dissatisfied with the achievement of the purposes of this Act or the implementation of the provisions of this Act.
(a) in terms of discouragement or restraint of black people appointed to a company from effectively participating in the company's core activities;
(b) in that the economic benefits received as a result of the broad black economic empowerment situation of the corporation will not flow to black people at the proportion specified in the relevant legal documents.
(c) aims to achieve a certain level of broad black economic empowerment compliance without acknowledging the black people any economic benefits that black people would expect to be reasonably related to the position or position they hold, including conclusions about their legal relationship with black people. or
(d) Includes conclusions of agreements with other companies to achieve or strengthen the broad black economic empowerment situation in the situation –
(i) There are significant limitations on the identity of a supplier, service provider, client, or customer, whether implicit or explicit.
(ii) It is reasonably considered unlikely to maintain business operations, given the resources available.
(iii) Terms of Use were not negotiated on a fair and reasonable basis, arm length. ”
Technical Services It can be used to help members understand the definition of front practice.
