FreshLeaf Hydro Farms (Pty) Ltd Business Plan › Regulatory & Legal Framework

11.1 Applicable Legislation

FreshLeaf Hydro Farms will operate in full compliance with all applicable South African legislation and regulations, including:

• Companies Act, No. 71 of 2008 – corporate governance and compliance.

• Agricultural Product Standards Act, No. 119 of 1990 – produce quality standards and grading.

• Foodstuffs, Cosmetics and Disinfectants Act, No. 54 of 1972 – food safety and labelling requirements.

• National Environmental Management Act (NEMA), No. 107 of 1998 – environmental impact assessments and ongoing compliance.

• National Water Act, No. 36 of 1998 – water use licensing and abstraction permits.

• Basic Conditions of Employment Act, No. 75 of 1997 – employment terms and conditions.

• Occupational Health and Safety Act, No. 85 of 1993 – workplace health and safety.

• Broad-Based Black Economic Empowerment Act, No. 53 of 2003 – B-BBEE compliance and reporting.

• Income Tax Act and VAT Act – taxation compliance.

11.2 B-BBEE Compliance

FreshLeaf Hydro Farms is committed to achieving and maintaining a Level 2 B-BBEE contributor status. The Company’s transformation strategy includes meaningful HDI equity ownership (50%), enterprise and supplier development programmes targeting emerging black-owned agricultural businesses, preferential procurement from B-BBEE compliant suppliers, and skills development investment exceeding the sector code targets. The Company will engage an accredited B-BBEE verification agency to conduct annual verification assessments.

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