Company: DTSQ
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001417
Chunk: 1038

Company: DT Cloud Star Acquisition Corp
Filing Date: 2025-03-31
Form: 10-K
Item: Item 9A
Chunk 1038
---
                                            or it, whether acquired before, in or after our initial public offering, in favor of our
                                            initial business combination. Additionally, our officers and directors will not receive distributions
                                            from the trust account with respect to any of their initial shares if we do not complete
                                            a business combination. Furthermore, our initial shareholders have agreed that the private
                                            units will not be sold or transferred by them until after we have completed our initial business
                                            combination. In addition, our officers and directors may loan funds to us after our initial
                                            public offering and may be owed reimbursement for expenses incurred in connection with certain
                                            activities on our behalf which would only be repaid if we complete an initial business combination.
                                            For the foregoing reasons, the personal and financial interests of our directors and executive
                                            officers may influence their motivation in identifying and selecting a target business, completing
                                            a business combination in a timely manner and securing the release of their shares.

69

Under
Cayman Islands law, directors owe the following fiduciary duties:

    ●
    duty
    to act in good faith in what the director believes to be in the best interests of the company as a whole;

    ●
    duty
    to exercise powers for the purposes for which those powers were conferred and not for a collateral purpose;

    ●
    directors
    should not improperly fetter the exercise of future discretion;

    ●
    duty
    not to put themselves in a position in which there is a conflict between their duty to the company and their personal interests;
    and

    ●
    duty
    to exercise independent judgment.

In
addition to the above, directors also owe a duty of care which is not fiduciary in nature. This duty has been defined as a requirement
to act as a reasonably diligent person having both the general knowledge, skill and experience that may reasonably be expected of a person
carrying out the same functions as are carried out by that director in relation to the company and the general knowledge, skill and experience
of that director.

As
set out above, directors have a duty not to put themselves in a position of conflict and this includes a duty not to engage in self-dealing,
or to otherwise benefit as a result of their position. However, in some instances what would otherwise be a breach of this duty can be
forgiven and/or authorized in advance by the shareholders provided that there is full disclosure by the directors. This can be done by
way of permission granted