Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 47

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 47
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on their ability to make distributions to us, including restrictions on the conversion of RMB into US dollars or other hard currency and
other regulatory restrictions.

You may face difficulties in protecting your
interests as a shareholder, as Cayman Islands law provides substantially less protection when compared to the laws of the United States
and it may be difficult for a shareholder of ours to effect service of process or to enforce judgements obtained in the United States
courts.

Our corporate affairs are governed by our amended
and restated memorandum and articles of association and by the Cayman Islands Companies Act (As Revised) (“ Companies Act”)
and common law of the Cayman Islands. The rights of shareholders to take legal action against our directors and us, actions by minority
shareholders and the fiduciary responsibilities of our directors to us under Cayman Islands law are to a large extent governed by the
common law of the Cayman Islands. The common law of the Cayman Islands is derived in part from comparatively limited judicial precedent
in the Cayman Islands as well as from English common law. Decisions of the Privy Council (which is the final court of appeal for British
Overseas Territories such as the Cayman Islands) are binding on a court in the Cayman Islands. Decisions of the English courts, and particularly
the Supreme Court of the United Kingdom and the Court of Appeal are generally of persuasive authority but are not binding on the courts
of the Cayman Islands. The rights of our shareholders and the fiduciary responsibilities of our directors under Cayman Islands law are
not as clearly established as they would be under statutes or judicial precedents in the United States. In particular, the Cayman Islands
has a less developed body of securities laws as compared to the United States, and provide significantly less protection to investors.
In addition, Cayman Islands companies may not have standing to initiate a shareholder derivative action before the United States federal
courts. The Cayman Islands courts are also unlikely to impose liabilities against us in original actions brought in the Cayman Islands,
based on certain civil liability provisions of United States securities laws.

Currently, all of our operations are conducted outside
the United States, and substantially all of our assets are located outside the United States. All of our directors and officers are nationals
or residents of jurisdictions other than the United States and a substantial portion of their assets are located outside the United States.
As a result, it may be difficult for a shareholder to effect service of process within the United States upon