As we enter the month of May, we are experiencing colder weather now in South Africa, while Europe is predicted to have a hot summer. I assume climate control will continue to make things unpredictable.
Unfortunately, in April, Pretoria was without water for 9 days, which highlighted the lack of ability to rectify problems quickly while millions suffered. Although it was eventually restored, the explanations for the incident varied considerably, and there was no substantial apology or factual explanation given to residents. Load shedding and water scarcity have become commonplace in the country, which is concerning. As the embassy capital of the country I shudder to think of yet another negativity nail in our coffin alongside loadshedding, crime and corruption.
I am concerned about the proliferation of seemingly questionable solutions being offered by companies in response to the B-BBEE black ownership requirements. While black ownership is important, an ownership structure should not be a tick-box exercise or enable already wealthy individuals to gain more wealth without adding value to the company. Ownership structures that involve under-the-table separation agreements, monthly charges for black directors, and pre-decided dividend earnings may be costly and unsustainable in the long run. Instead, a carefully considered ownership structure that takes into account the current shareholders' idiosyncrasies and behavior should be implemented. It should also be easy to understand, easy to manage, and involve the least possible amount of administration while sharing the company's dividends with deserving people.
We have been assisting companies with specifically created structures for years and appart from being possibly the most effective structures they also make the most sense. I'm happy to meet with you to investigate your options. I encourage you to think carefully about ownership structures and consider all options before making a decision.
On a personal note, I am currently reading "The ANC Billionaires" by Pieter Du Toit, which has been an eye-opener. Its books like these that make you realise what's right and what's not!
Ever wondered how much a Billion rand is? You could spend R 5000 a day for more than 500 years, or R 100 000 every day for 25 years before running out!
Thank you for your continued support.
Sincerely
Hilton Johnson
CEO – Compliance Hub