Initially, the Group will have 4 layers of management including; Branch Manager (at a Branch Level), General Manager (at a Divisional Level), Managing Director (at a Subsidiary Company Level) and Chief Executive Officer (at a Group Level). However, as a company grows more layers will be introduced as and when requires i.e. Provincial Manager (at a Provincial Level) Regional Manager (at a Regional Level) and National Middle Managers (at a National Level).
National Executive Committee (EXCO)
The National Executive Committee (EXCO) will consist of 5 top executives including; CEO, COO, CFO, CMO & CHO who will be accountable to the Board of Directors. EXCO will be formed in October followed by nomination of at least 12 board members.
Board of Directors
The Board of Directors will be nominated during October 2019 by all stakeholders of which the CEO will become Ex-Officio member. All Executives will be held accountable to the Board of Directors which will be composed in line with the good principles of Corporate Governance.
The Group will start off with 25 branches which are strategically located in different parts of South Africa. 13 of these 25 branches will be co-owed with Branch Managers whereby they will be allowed to purchase up to 40% share in the branch they will be managing and the rest of the shares will be directly owned by IBEC Accounting which is an independent entity held by IBEC Business Solutions a Subsidiary of IBEC Group. Only 12 of the 25 IBEC Accounting Branches will be 100% owned by the company without partnership option.
However, the company offers profit share to Branch Managers in line with the terms and conditions of their employment contract. The main difference between partnership and profit sharing scheme branches is that in partnership branches, branch managers contribute to the branch startup capital proportionate to their shareholding whereas in profit sharing scheme branches, there is no contribution made by the branch manager.
The Accounting Firm is solely owned by the founder Skhumbuzo Nxumalo while it is a division of IBEC Business Solution which is a Subsidiary Company of IBEC GROUP. Some of its branches will be co-owned with Branch manager who will be Partners.
IBEC BUSINESS SOLUTIONS
Business Solutions is currently under formation and will consist of co-owned divisions. The General Managers of these division will own up to 40% of share of the divisions which they operate. IBEC Business Solution will be the Holding Company of all business consulting league of the Group; IBEC Accounting, IBEC Human Capital, IBEC COREGEX, IBEC Business Advisory and IBEC Business Academy.
Other 4 Subsidiary Companies
The process of recruiting the other 4 subsidiary companies will run between July and September 2019. We are currently laying a sound legal ground work on which the Group will be built including the draft MOI and MOU as well as business strategy document.
The Group will be the Main Structure which is Holding all Subsidiary Companies including; IBEC Business Solutions, IBEC IT, IBEC Legal, IBEC Insurance & Investment and IBEC Marketing. Each of these subsidiaries will be run by Managing Directors preferable the ones who founded them and hold a majority stake. The Group itself will be owned by its Subsidiary Companies and run by a duly elected or appointed CEO by the Group.