On 7 October 2026, the High Court (Gauteng Division, Pretoria) reviewed and set aside the Minister of Trade, Industry and Competition’s decision to promulgate the Legal Sector Code, and referred the matter back to the Minister for reconsideration.
The judgment turns on how the decision was made, not on what the Code contains. The Court found that the Minister had not shown that he independently exercised the discretion the B-BBEE Act requires of him. It did not rule that transformation is unlawful, and it did not decide whether the Code’s substantive provisions are valid. The Court also reaffirmed the constitutional imperative of transformation in the legal profession.
The Minister may now reconsider and issue the same or a revised Code, and the consultation work already done does not have to be repeated. The judgment may also be taken on appeal.
We are assessing what this means for legal practices’ B-BBEE verifications and will share guidance shortly. If you have questions about your verification, contact us at [email protected] or (011) 880 1630.
Frequently Asked Questions
Is the Legal Sector Code still in force?
As of 7 October, the Court set aside the Minister’s decision to promulgate the Code, so for now the Code no longer has legal effect. This could change if the Minister appeals or makes a fresh decision.
Did the Court find that the Legal Sector Code's targets or requirements are unlawful?
No. The Court expressly did not decide whether the Code’s ownership targets, weightings, deviations from the Generic Codes or other substantive provisions are valid. It found only that the Minister had not shown that he independently exercised the discretion the B-BBEE Act requires.
Does this mean transformation requirements no longer apply to the legal sector?
No. The Court strongly reaffirmed the constitutional imperative of transformation in the legal profession. It noted that progress at entry level has not been matched at ownership and leadership level. Its concern was with how the decision was made, not with the goal of transformation.
Can the Legal Sector Code come back?
Yes. The Minister may reconsider and promulgate the same Code or a revised one, as long as he independently evaluates the supporting material, the deviations from the Generic Codes, the objections raised and the statutory requirements. The consultation and technical work already done remains available and does not have to be repeated from scratch.
Could a new Legal Sector Code be challenged again?
Yes. The Court said that if the Minister makes a fresh decision, the substantive challenges to the Code may still need to be decided by a court.
Which codes will my practice be verified against now?
We are confirming the position and will advise clients directly. Please don’t change your B-BBEE strategy or targets based on this judgment alone until the position is clear.
Is my current B-BBEE certificate still valid?
We are assessing the effect on certificates already issued under the Legal Sector Code and will let affected clients know. In the meantime, please contact us about any specific tender or contract requirements.
What if my verification is already in progress?
Contact your Honeycomb analyst. We will tell you how your verification will proceed once the position is confirmed.
What should my legal practice do now?
Keep your B-BBEE records and transformation initiatives up to date. The judgment does not change the underlying goals, and a revised Code may follow. Read our summary of the judgment, and contact us at [email protected] or (011) 880 1630 with any questions about your verification.