Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 49

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 49
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 the U. S. federal securities
laws, there is uncertainty whether and on what basis a PRC court would enforce judgments rendered by courts in the United States or the
BVI. In addition, Taiwan does not have treaties providing for the reciprocal recognition and enforcement of judgments of courts with the
United States and the BVI. Therefore, recognition and enforcement in Taiwan of judgement of United States and BVI courts in relation to
any matter not subject to a binding arbitration provision would need to be enforced in accordance with common law principles.

Certain types of class or derivative actions
generally available under U. S. law may not be available as a result of the fact that we are incorporated in the BVI. As a result, the
rights of shareholders may be limited.

Shareholders of BVI companies may not have standing
to initiate a shareholder derivative action in a court of the United States. The BVI 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. securities law or to impose liabilities
against us, in original actions brought in the BVI, based on certain liability provisions of U. S. securities laws that are penal in nature.

You may have more difficulty protecting
your interests than you would as a shareholder of a U. S. corporation.

Our corporate affairs will be governed by the
provisions of our memorandum and articles of association, as amended and restated from time to time, and by the provisions of applicable
BVI law. The rights of shareholders and the fiduciary responsibilities of our directors and officers under BVI law are not as clearly
established as they would be under statutes or judicial precedents in some jurisdictions in the United States, and some states (such as
Delaware) have more fully developed and judicially interpreted bodies of corporate law.

These rights and responsibilities are to a large
extent governed by the Companies Act and the common law of the BVI. The common law of the BVI is derived in part from judicial precedent
in the BVI as well as from English common law, which has persuasive, but not binding, authority on a court in the BVI. In addition, BVI
law does not make a distinction between public and private companies and some of the protections and safeguards (such as statutory pre-emption
rights, save to the extent expressly provided for in the memorandum and articles of association) that investors may expect to find in
relation to a public company are not