Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 58

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 58
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shares to decline.

Sales of substantial amounts
of our ordinary shares in the public market, or the perception that these sales may occur, could cause the market price of our ordinary
shares to decline. This could also impair our ability to raise additional capital through the sale of our equity securities. We are authorized
to issue an unlimited number of shares as there is no concept of authorized share capital under Singapore law. Moreover, we have entered
into a registration rights agreement pursuant to which we have granted demand and piggyback registration rights to our Chief Executive
Officer, Isaias (Zak) Jose Calisto.

Although we have paid dividends
in the past, our ability to pay dividends in the future depends on many factors and we cannot guarantee you that we will continue to pay
dividends in the future.

The payment and timing of dividends
in cash or other distributions (such as a return of capital to shareholders through share buy-backs, for example) are determined by the
board after considering factors that include: earnings and Free Cash Flow; current and anticipated capital requirements; economic conditions;
contractual, legal, tax and regulatory restrictions (including covenants contained in any financing agreements); the ability of Group
subsidiaries to distribute funds to Karooooo; and such other factors the board may deem relevant. We aim to reinvest retained earnings
to the extent that it aligns with the Group’s required return on incrementally reinvested capital, return on equity, and short-
to medium-term growth strategy. The board may, by ordinary resolution, declare dividends at a general meeting of its shareholders, but
no dividend shall be payable except out of our profits, and the amount of any such dividend shall not exceed the amount recommended by
the board of directors. Subject to Karooooo’s constitution and in accordance with the Singapore Companies Act, the board of directors
may, without the approval of shareholders, declare and pay interim dividends, but any final dividends the board declares must be approved
by an ordinary resolution at a general meeting of shareholders.

We cannot provide assurances regarding
the amount or timing of dividend payments and may decide not to pay dividends in the future. As a result, you should not rely on an investment
in our ordinary shares to provide dividend income and if we do not pay dividends, capital appreciation, if any, of our ordinary shares
will be a shareholder’s sole source of gain in the near future. See “ Dividends and Dividend Policy.”

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