Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 60

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 60
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, new rules and regulations relating
to disclosure, financial reporting and controls and corporate governance, or varying interpretations of existing rules and regulations,
could be adopted by the SEC, Nasdaq or other regulatory bodies and exchange entities from time to time, and could result in a significant
increase in legal, accounting and compliance costs and make certain activities more time-consuming and costly. Any of these effects could
have a material adverse effect on our business, financial condition and results of operations.

For as long as we are an “emerging
growth company” under the JOBS Act, our independent registered public accounting firm will not be required to attest to the effectiveness
of our internal control over financial reporting pursuant to Section 404 of SOX. We could be an emerging growth company for up to five
years from our IPO. See “ Summary - Implications of Being an Emerging Growth Company,” below.

Furthermore, after the date we
are no longer an emerging growth company, our independent registered public accounting firm will only be required to attest to the effectiveness
of our internal control over financial reporting depending on our market capitalization. Even if our management concludes that our internal
control over financial reporting is effective, our independent registered public accounting firm may still decline to attest to our management’s
assessment or may issue an adverse opinion report if it is not satisfied with our controls or the level at which our controls are documented,
designed, operated or reviewed, or if it interprets the relevant requirements differently from us. In addition, in connection with the
implementation of the necessary procedures and practices related to internal control over financial reporting, we may identify deficiencies
that we may not be able to remediate in time to meet the deadline imposed by SOX for compliance with the requirements of Section 404(b).
Failure to comply with Section 404(b) could subject us to regulatory scrutiny and sanctions, impair our ability to raise capital, cause
investors to lose confidence in the accuracy and completeness of our financial reports and negatively affect our share price.

As a foreign private issuer
and “controlled company” within the meaning of the Nasdaq rules, we are permitted to, and we will, rely on exemptions from
certain corporate governance standards. Our reliance on such exemptions may afford less protection to holders of our ordinary shares.

Nasdaq’s corporate governance
rules require listed companies to have, among other things, a majority of independent directors and independent director oversight of
executive compensation, nomination of directors and corporate governance matters. As a foreign private issuer, we are