« Wethu seeks tech stakes | Main | Accounting for transformation »

December 1, 2007

BEE investors left out of profit loop

OVER the last four years the JSE has amassed substantial profits due to strong investor interest in South African financial markets. But many black economic empowerment (BEE) investors are missing out on the stock market boom because they are locked into contracts that force them to become long-term shareholders.

In many instances black investors signed contracts that contain lock-in clauses that prevent them from selling their shares for up to 10 years. White-owned and controlled companies impose the clauses on black shareholders because they fear losing their BEE credentials if they allow their black shareholders to sell.

Read More

Posted by StaffWriter at December 1, 2007 7:30 AM