Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 30

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 30
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63 and 37 seconded employees in Taiwan and 2, 3 and 3 seconded employees
in Macau employed by our Group directly, respectively. The seconded employees work for and are under the supervision of our end-users
during the employment period but they remain as our employees pursuant to the employment contracts entered into between the seconded employees
and us. As such, we may be vicariously liable for their acts or omissions while they carry out or purport to carry out the respective
responsibilities entrusted to them by our end-users. Vicarious liability refers to the liability of a person for the tort committed by
another person, for example, an employer would be liable for the acts and omissions of its employees even if the employer has not personally
committed such acts and omissions. When providing employment services directly as our seconded employees’ employers of record, we
may also be exposed to the following risks:

  claims                                              

  claims                                                                                                                              

  claims                                                                                           

  claims                                                                

  claims                                                                                       

We may need to incur additional
costs to settle or defend these claims or legal actions and our business, results of operations and financial conditions may be adversely
affected. Our reputation may be substantially affected and the above events may also affect our relationship with our existing and potential
channel customers and end-users.

Our historical dividend payments should
not be taken as an indication of our future dividend policy or our payment of dividends in the future.

We may distribute dividends by way of cash or by other means that we
consider appropriate. As a holding company, we mainly rely on receipt of funds from our Hong Kong subsidiary, Galaxy Payroll (HK) by way
of dividends payments for our cash and financing requirements. According to the Companies Ordinance of Hong Kong, a Hong Kong company
may only make a distribution out of profits available for distribution or other distributable reserves. In addition, there can be no assurance
that in the future the PRC government will not intervene or impose restrictions on Galaxy Payroll (HK)’s ability to transfer or
distribute cash/assets to entities outside of Hong Kong, which could result in an inability or prohibition on making transfers or distributions
to us and adversely affect our business. A decision to declare and pay any dividends would require the approval of our Board and will
be at its discretion. In addition, any final dividend for a financial year will be subject to Shareholders’ approval. During the
year ended June 30, 2025, our