Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 52

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 52
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 more difficult for us to find qualified persons to serve on our BOD or as executive
officers. We are currently evaluating and monitoring developments with respect to these rules and regulations, and we cannot predict or
estimate with any degree of certainty the amount of additional costs we may incur or the timing of such costs.

  34  

Mr. Bong Lau, our Chairman and CEO will have substantial influence over
our Company and their interests may not be aligned with the interests of our other shareholders.

Mr. Bong Lau, our Chief Executive Officer and chairman
of the Board beneficially own 70% of the voting power of our total issued and
outstanding shares. As a result of their significant shareholding, Mr. Bong Lau, has, substantial influence over our business, including
decisions regarding mergers, consolidations and the sale of all or substantially all of our assets, election of directors and other significant
corporate actions. He may take actions that are not in the best interests of us or our other shareholders. This concentration of voting
power may discourage, delay or prevent a change in control of our Company, which could deprive our shareholders of an opportunity to receive
a premium for their shares as part of a sale of our company and might reduce the market price of our ordinary shares. These actions may
be taken even if they are opposed by our other shareholders.

Our dual-class share structure with different voting rights will limit
your ability to influence corporate matters and could discourage others from pursuing any change of control transactions that holders
of our Ordinary Shares may view as beneficial.

We have adopted a dual-class share structure such that our shares consist
of Ordinary Shares and Preferred Shares. In respect of matters requiring the votes of shareholders, each Ordinary Share is entitled to
one vote and each Series A Preferred Share is entitled to 20 votes. The Series A Preferred Shares may be converted into Ordinary Shares
by its holder. We have authorized 50,000,000 Preferred Shares and our Chairman and Chief Executive Officer Mr. Bong Lau, beneficially
owns all of the 2,000,000 issued and outstanding Series A Preferred Shares. As a result of this dual-class share structure, the holder
of our Series A Preferred Shares will have concentrated control over the outcome of matters put to a vote of shareholders and have significant
influence over our business, including decisions regarding mergers, consolidations, liquidations and the sale of all or substantially
all of our assets, election of directors and other significant corporate