THE VERDICT IS IN. THE MINISTER HAS HOMEWORK AND THE LEGAL SECTOR CODE IS BENCHED.
High Court sets aside the B-BBEE Legal Sector Code
What the ruling means for law firms, advocates and the clients who buy legal services
Today a full bench of the Gauteng Division of the High Court, Pretoria, reviewed and set aside the Minister of Trade, Industry and Competition's decision to promulgate the Legal Sector Code (Government Notice 5221, Government Gazette 51271, 20 September 2024). The matter has been remitted to the Minister for reconsideration.
The order was made in two applications heard together: one brought by Deneys Reitz, Bowman Gilfillan, Webber Wentzel and Werksmans, and one brought by Solidarity. The Minister must pay the applicants' costs.
Why the Code fell
The Court did not strike the Code down because of its content. It found that the Minister had not exercised the discretion section 9(1) of the B-BBEE Act entrusts to him. On his own affidavit, he treated the targets and weightings as matters the legal sector had "in its wisdom" decided, and saw his role as gazetting what the sector had agreed. Consultation and technical work may inform the Minister's decision, the Court held, "but they cannot supply the judgment that Parliament has required him to exercise."
The Court expressly declined to decide the substantive challenges to the Code's targets and its departures from the Generic Codes. It also said the constitutional imperative of transformation in the legal profession remains "undiminished".
What it means in practice
No Legal Sector Code in force for now. Until the Minister decides afresh, legal-sector entities should expect to be measured under the Generic Codes of Good Practice, as they were before September 2024. Watch for guidance from the dtic and the B-BBEE Commission.
Existing certificates. The order does not deal with certificates and affidavits already issued under the Legal Sector Code. Firms should speak to their verification agency before their next measurement, and procurement teams should expect questions.
An appeal would pause the order. If the Minister applies for leave to appeal, section 18(1) of the Superior Courts Act suspends the operation of the order while that application and any appeal are pending. Check the position before acting on it.
The Code can come back. The Minister need not restart the consultation process. He must evaluate the existing material himself and decide whether the Code and its departures from the Generic Codes are justified. A fresh decision could face fresh challenges.
Our view
This is a ruling about how public power is exercised, not a verdict against transformation in the legal profession. For the firms we advise, the message is simple: keep your transformation programmes running, do not throw away evidence gathered under the Legal Sector Code, and plan your next verification for both scenarios — measurement under the Generic Codes, or under a re-promulgated Code.
If you are unsure where your firm stands, talk to us before your next measurement period closes.
Hilton Johnson · Founder & CEO, Compliance Hub Consulting
Deneys Reitz t/a Deneys and Others v Minister of Trade, Industry and Competition and Others (Case No. 2024-149523), heard with Solidarity Trade Union v Minister of Trade, Industry and Competition and Others (Case No. 2025-033365), Gauteng Division, Pretoria. Order made 7 October 2026 (Janse van Nieuwenhuizen, Basson and Mokose JJ). This news flash is general information, not legal advice.
