Page 7 - Transformation Report 2018/2019

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With so many law firms falling under the R50 million turnover The Group
mark it stands to reason that law firms are keenly interested in the has compiled
benefits of automatic recognition. Even more so given the cost an internal
and complexity of BEE verification and the pressure on firms from policy
corporate and financial clients to achieve high BEE levels or risk document
losing such clients. to correctly
guide
Within the Group, member firms have also been motivated to members
consider the benefits of becoming black-owned and gaining firms towards
automatic recognition. With member firms having internally becoming a
invested in developing black professionals over a period of time, black-owned
some member firms have so-doing created the opportunity to law firm
identify potential black professionals to advance further in the firm
and take up equity, even if at an accelerated pace.

Recognising the benefits and incentive in moving towards
becoming a black-owned law firm and taking cognisance of
the intentions of a number of member firms to accelerate black
professional equity in the firm, the Group has deemed it relevant
to compile an internal policy document for member firms to guide
them on moving towards becoming a black-owned law firm.

This policy document is based on the requirements of the BEE
Codes as well as advocated practices of verification agencies,
and provides best practice guidance to member firms on how to
move towards becoming a black-owned law firm as well as being
compliant. Given the impact of taking a decision to accelerate
black professionals into equity positions in the firm, the economic
benefit must follow suit and reflect positively on the decision
taken. The policy helps firms negotiate pitfalls, understand the
decisions they need to make and steps to take to ensure that
their compliance is and remains beyond repute. In support of the
policy, member firms that are black-owned are annually audited
by the Group, with advice and recommendations provided where
necessary to ensure firms are compliant in all respects.

The result of this proactive approach has seen a number of
member firms taking the decision to become black-owned or to
start planning for such a situation in the near future – a positive
development that will help contribute to a growing number of
black-owned law firms in the country.

Group Transformation Report for 2018/19