The challenge
The codes of good practice allow foreign multinational companies that do business in South Africa some flexibility in how they structure their empowerment deals. In particular, the B-BBEE Codes of Good Practice acknowledge that there may be multinationals whose global practices prevent them from complying with the ownership element of B-BBEE through the traditional sale of shares to black South Africans. Ipsos South Africa challenged the norm and took the road less travelled.
[gdlr_space height=”30px”]The solution
NPI Governance Consulting was entrusted with the task of consulting on the ownership element for Ipsos South Africa through the following interventions:
- Advising shareholders selling 26% of shares to strategic Broad-Based Scheme
- Advising IPSOS’ executive management on the latest developments in the Amended B-BBEE Codes and its impact on their B-BBEE score
The result
Ipsos set up a Public Benefit Organisation in South Africa called The Ipsos Youth Development Trust, which has 26% shareholding in IPSOS South Africa. Its strategy is aligned to the global Ipsos Foundation focusing on youth development.
