Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 63

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 63
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because of their ownership position, will have considerable influence regarding the outcome of the election. Accordingly, for such period
of time, they will have significant influence with respect to our management, business plans and policies, including the appointment and
removal of our officers. In particular, for so long as such shareholders continue to own a significant percentage of our ordinary shares,
they may be able to cause or prevent a change of control of our company and could preclude any unsolicited acquisition of our company.
The concentration of ownership could deprive other shareholders of an opportunity to receive a premium for their ordinary shares as part
of a sale of our company and ultimately might affect the market price of our ordinary shares.

We may lose our foreign
private issuer status which would then require us to comply with the Exchange Act’s domestic reporting regime and cause us to incur
significant legal, accounting and other expenses.

In order to maintain our current
status as a foreign private issuer, either (a) more than 50% of our outstanding voting securities must be either directly or indirectly
owned of record by non-residents of the United States or (b) if more than 50% of our outstanding voting securities are owned either directly
or indirectly owned of record by residents of the United States, (i) a majority of our executive officers or directors may not be U. S.
citizens or residents, (ii) more than 50% of our assets cannot be located in the United States and (iii) our business must be administered
principally outside the United States. If we lose this status, we would be required to comply with the Exchange Act reporting and other
requirements applicable to U. S. domestic issuers, which are more detailed and extensive than the requirements for foreign private issuers.
We would be required under current SEC rules to prepare our financial statements in accordance with GAAP, rather than IFRS, and modify
certain of our policies to comply with corporate governance practices associated with U. S. domestic issuers. Such conversion of our financial
statements to GAAP would involve significant time and cost. We may also be required to make changes in our corporate governance practices
in accordance with various SEC and Nasdaq rules. The regulatory and compliance costs to us under U. S. securities laws if we are required
to comply with the reporting requirements applicable to a U. S. domestic issuer may be significantly higher than the costs we will incur
as a foreign private issuer.

We are an “emerging
growth company