Company: REE
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025661
Chunk: 59

Company: REE Automotive Ltd.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 3
Chunk 59
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 to our capitalization or dividend policy, or other material changes to our business or corporate structure. Such shareholders may also utilize rights pursuant to the provisions of the Companies Law to demand, where applicable, to call an extraordinary general meeting of shareholders at which the removal of some or all of our then-incumbent directors and the election of its nominees in their stead would be on the agenda. In this regard, M& G and Motherson have already pursued discussions with REE regarding the designation of a representative on our board of directors, culminating, in the case of Motherson, with it obtaining a representative on REE’s board of directors.

Success in obtaining a board seat gives a shareholder influence over the management and policies of REE and enables it to influence our operations for its own interests, which may be to the detriment of our other shareholders. The interests of one or more of these shareholders may not always coincide with, and in some cases may conflict with, the best interest of REE’s business and the interests of our other shareholders. These shareholders’ significant ownership in, and influence over, us may also discourage others from making an equity investment in us. In particular, this concentrated voting control limits other shareholders’ ability to influence corporate matters, including control of the composition of our board of directors and our corporate strategies. Such concentration may also make some transactions or corporate decisions more difficult or impossible without their support, or more likely with such shareholder(s)’ support.

There can be no assurances that either M& G and/or Motherson, among other investors, either alone or together with others, will not attempt one of the above-mentioned actions in a manner that our board of directors believes is not in the best interest of our shareholders. Such future actions may require us to devote significant additional resources and time that would otherwise be directed at our business and operations or may demotivate current executives and discourage other executives from joining REE. Any of the above actions could cause the price of our Class A Ordinary Shares to decline, depending on investors’ perceptions of such shareholder(s)’ actions and influence, including due to the perception that conflicts of interest may exist or arise. Any of the above actions, can also result in the transition of REE to a private company and a loss of liquidity and capital appreciation for your Class A Ordinary Shares, each of which would have a material adverse impact on the ownership of your Class A Ordinary Shares and our business and operations.

If securities and industry analysts do not publish research or reports about REE’s business