Black shareholding can attribute a maximum of 23% to the Generic Scorecard, but there is no legal obligation that can be enforced. In any event, Qualifying Small Enterprises may choose any four of the seven Elements on which to be rated, and can leave out the Ownership element entirely, although black representation does contribute to bonus points as well as promotions under certain circumstances.
If the business has no Black shareholders, what is the point of going through a BBBEE rating?
There are seven BBBEE elements and each contributes to the outcome of the Scorecard and the ownership element is just one of these. Since ownership carries a weighting of maximum 23% and 28% respectively, based on either the Generic Scorecard or the QSE Scorecard, it is possible to achieve an acceptable BBBEE Rating without having any Black shareholders in the business.