South African Empowerment Rule Change May Hurt Top Companies
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Some of the biggest companies in South Africa could fall foul of regulations and lose business after the government changed how it will evaluate their compliance with rules to award shares to black people.
Black empowerment programs benefiting community and special interest trusts and employees will carry less weight when setting a company’s compliance rating than previously, the Department of Trade and Industry said in a notice on Tuesday. The rating is needed to secure business from government and some other companies.