HIGH COURT SETS ASIDE THE LEGAL SECTOR B-BBEE CODE’S PROMULGATION

A significant regulatory development for the legal profession. Here’s what you need to know.

South Africa’s B-BBEE regulatory landscape has seen an important development following a judgment delivered by the Gauteng Division of the High Court in Pretoria on 7 October 2026.

The Court set aside the Minister of Trade, Industry and Competition’s decision to promulgate the Legal Sector Code of Good Practice, referring the matter back to the Minister for reconsideration.

The judgment raises important questions about the future of B-BBEE regulation within the legal profession. Let’s take a closer look.

WHAT LED TO THE JUDGMENT?

The Legal Sector Code was introduced to address transformation challenges within the legal profession, including ownership, management control, skills development and access to opportunities for Black legal practitioners.

Its promulgation was challenged by four prominent law firms, Deneys, Bowmans, Webber Wentzel and Werksmans, alongside Solidarity Trade Union.

At the centre of the dispute was whether the Minister had independently considered the proposed Code before approving its publication.

The Court found that the Minister had relied substantially on recommendations from the legal sector and had not sufficiently exercised his own statutory discretion as required under the B-BBEE Act.

Consequently, the decision to promulgate the Code was set aside.

DOES THIS MEAN THE LEGAL SECTOR CODE IS NO LONGER VALID?

The judgment requires careful interpretation.

The Court did not declare the Code’s individual provisions or transformation objectives unconstitutional or unlawful. Rather, its decision focused on the process followed by the Minister when approving the Code.

The matter has now been referred back to the Minister for reconsideration. The Court also acknowledged the importance of continued transformation within the legal profession.

The outcome of this reconsideration process may have further implications for the future of sector-specific B-BBEE regulation.

WHAT DOES THIS MEAN FOR AFFECTED BUSINESSES?

For law firms and businesses operating within or engaging with the legal sector, this development introduces an element of regulatory uncertainty.

Its implications may extend to existing B-BBEE arrangements, future measurement considerations and transformation planning.

However, understanding how the judgment affects an individual organisation requires consideration of its specific circumstances and applicable B-BBEE requirements.

As the Minister reconsiders the matter, affected businesses should remain informed and seek appropriate professional guidance before making decisions about their compliance arrangements.

NEED PROFESSIONAL GUIDANCE ON YOUR NEXT STEPS?

Regulatory developments can raise complex questions, and knowing how they affect your business is not always straightforward.

At EconoBEE, we provide Ad Hoc B-BBEE Consulting Services to businesses requiring specialised assistance with specific compliance matters, regulatory developments and transformation strategies.

Whether you need clarity on a particular B-BBEE issue, an assessment of your current position or professional guidance on a regulatory development, our consulting team is available to assist.

You don’t necessarily need a long-term consulting engagement to access the expertise you need.

Let’s help you navigate your next B-BBEE decision with confidence.

Contact EconoBEE to discuss your consulting requirements.

EconoBEE | Your Transformation Partner

REFERENCE

Deneys Reitz t/a Deneys and Others v Minister of Trade, Industry and Competition and Others; Solidarity Trade Union v Minister of Trade, Industry and Competition and Others (2024/149523; 2025/033365) [2026] ZAGPPHC 1138 (7 October 2026).