Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 61

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 61
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 permitted to, and
we will, follow home country practice in lieu of the above requirements. While a majority of the directors on our board of directors are
independent directors and all of our board committees consist entirely of independent directors, as long as we rely on the foreign private
issuer exemption to certain of the Nasdaq corporate governance standards, a majority of the directors on our board of directors are not
required to be independent directors, and that certain of our board committees do not have to consist entirely of independent directors.
Therefore, to the extent we rely on such exemptions in the future, our board of directors’ approach to governance may be different
from that of a board of directors consisting of a majority of independent directors, and, as a result, the management oversight of our
company may be more limited than if we were subject to all of the Nasdaq corporate governance standards.

In the event we no longer qualify
as a foreign private issuer, we intend to rely on the “controlled company” exemption under the Nasdaq corporate governance
rules. A “controlled company” under the Nasdaq corporate governance rules is a company of which more than 50% of the voting
power is held by an individual, group or another company. Our controlling shareholder controls a majority of the combined voting power
of our outstanding ordinary shares, making us a “controlled company” within the meaning of the Nasdaq corporate governance
rules. As a controlled company, we would be eligible to elect not to comply with certain of the Nasdaq corporate governance standards,
including the requirement that a majority of directors on our board of directors are independent directors and that certain of our board
committees consist entirely of independent directors. We may utilize some of these exemptions.

Accordingly, our shareholders
will not have the same protection afforded to shareholders of companies that are subject to all of the Nasdaq corporate governance standards,
and the ability of our independent directors to influence our business policies and affairs may be reduced.

If we fail, for any reason,
to effectively or efficiently maintain proper internal control procedures, such failure could materially and adversely affect our business,
results of operations and financial condition.

Section 404(a) of SOX, requires
that management assess and report annually on the effectiveness of our internal control over financial reporting and identify any material
weaknesses in our internal control over financial reporting. Although Section 404(b) of SOX, requires our independent registered public
accounting firm to issue an annual report that addresses the effectiveness of our internal control over financial reporting,