Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 21

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 7
Chunk 21
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 courts are treated
as precedents in the usual way, reference often needs to be made to decided cases in other jurisdictions. While the common law of England
is recognised in the jurisdiction by way of statutory enactment, this is subject to local conditions that give the court a degree of flexibility.
However, in practice, the courts ordinarily treat English judgments as highly persuasive (although in certain cases, the BVI courts have
declined to follow English precedents, which is normally justified by distinguishing on the basis that the position is modified in the
BVI by statute). The BVI forms part of the wider jurisdiction of the Eastern Caribbean Supreme Court, so judgments from other courts in
the same jurisdiction are normally persuasive, even though they are not technically binding upon the court. Judgments from other leading
Commonwealth jurisdictions, particularly Australia and Hong Kong, are also often considered by the BVI courts. The rights of our shareholders
and the fiduciary responsibilities of our directors under British Virgin Islands law may not be as clearly established as they would be
under statutes or judicial precedents in some jurisdictions in the United States. In particular, the British Virgin Islands may have a
less developed body of securities laws as compared to the United States, and some states (such as Delaware) have more fully developed
and judicially interpreted bodies of corporate law.

British Virgin Islands companies may not
be able to initiate shareholder derivative actions in a federal court of the United States and may have to proceed with such action in
the British Virgin Islands, thereby limiting shareholders’ ability to protect their interests

Whether a British Virgin Islands
company has standing to initiate a shareholder derivative action in a federal court of the United States is a matter of United States
law and in such case, that company may have to proceed with such action in the British Virgin Islands. Permission is required from the
BVI Court in order for a shareholder of a BVI company to bring a derivative action in the BVI. The circumstances in which any such action
may be brought, and the procedures and defenses that may be available with respect to any such action, may result in the rights of shareholders
of a British Virgin Islands company being more limited than those of shareholders of a company organized in the United States. Accordingly,
shareholders may have fewer alternatives available to them if they believe that corporate wrongdoing has occurred. The British Virgin
Islands courts are also unlikely to recognize or enforce against us judgments of courts in the United States based on certain liability
provisions of U. S.