The Gauteng High Court has delivered its judgment in the highly anticipated challenge to the Legal B-BBEE Sector Codes of Good Practice, brought by major law firms and Solidarity against the Minister of Trade, Industry and Competition.
The judgment, handed down on 07 October 2026, has significant implications for the future development of the Legal B-BBEE Sector Codes of Good Practice and provides important lessons for the broader B-BBEE and Transformation environment.
The Court reviewed and set aside the Minister’s decision to promulgate the Legal B-BBEE Sector Codes of Good Practice and remitted the matter to the Minister for reconsideration.
Importantly, however, the Court did not find that Transformation is unconstitutional or that the objectives of the Legal B-BBEE Sector Codes of Good Practice are illegitimate.
The Court expressly recognised the continued need for meaningful transformation within the legal profession.
The Court’s finding focused primarily on how the Minister exercised his statutory discretion under section 9(1) of the B-BBEE Act.
The Court found that the Minister’s evidence indicated that he had regarded many of the substantive decisions contained in the Legal B-BBEE Sector Codes of Good Practice as having been made by the legal sector and stakeholders.
The Court held that consultation and stakeholder participation can inform the Minister’s decision, but they cannot replace the Minister’s own statutory responsibility to independently evaluate the proposed Legal B-BBEE Sector Codes of Good Practice and decide whether they should be promulgated.
This is perhaps the most important message arising from the judgment.
The Court did not conclude that the transformative objectives of the Legal B-BBEE Sector Codes of Good Practice were invalid.
In fact, the judgment recognises that the constitutional imperative of transformation and the need to address persistent inequalities within the legal profession remain undiminished.
The Court also emphasised that Transformation and the Rule of Law are mutually reinforcing constitutional commitments.
This means that the judgment should not be interpreted as a setback for Transformation itself.
Rather, it reinforces an important principle:
Transformation must be pursued through lawful, carefully considered and constitutionally compliant processes.
The matter has been returned to the Minister for reconsideration.
The Court did not require the entire process that led to the development of the Legal B-BBEE Sector Codes of Good Practice to start again, but for the Minister to reconsider this.
The extensive consultation, technical work and stakeholder contributions may still form part of the material considered by the Minister.
The key difference is that the Minister must now independently apply his statutory judgment to the issues before him.
For Legal Sector Businesses, in terms of application and B-BBEE Verification, based on the judgment, it is implied that Legal Sector Entities will revert to the application of the General B-BBEE Codes of Good Practice until further notice.
Furthermore, the judgment should not be viewed as a reason to delay or abandon Transformation initiatives.
Transformation remains a vital component of South Africa’s economic and constitutional landscape.
Businesses should continue to consider how their Transformation strategies can create measurable, sustainable and commercially meaningful outcomes.
This includes:
Businesses should use this period to review their B-BBEE Transformation strategy, strengthen governance, improve implementation and ensure that their initiatives deliver sustainable value.
Transcend Corporate Advisors can assist businesses to move beyond a compliance-focused approach and develop practical, sustainable Transformation strategies aligned to their business objectives.
Contact Transcend Corporate Advisors to discuss your B-BBEE Transformation strategy.