Company: NCL
Filing Date: 2025-01-14
Form Type: S-1/A
Source: 0001575872-25-000059
Chunk: 57

Company: Northann Corp.
Filing Date: 2025-01-14
Form: S-1/A
Chunk 57
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 might cause a delay or even denial of our listing application.

| 25 |

As a “controlled company” under the rules of the NYSE American Company Guide, we may choose to exempt our Company from certain corporate governance requirements that could have an adverse effect on our public stockholders.

Lin Li, our Chairman of the Board, Chief Executive
Officer, President, Secretary, and Treasurer, currently owns a majority of the voting power of our issued and outstanding common stock.
Under the NYSE American Company Guide Section 801(a), a company of which more than 50% of the voting power is held by an individual, group
or another company is a “controlled company”. A “controlled company” may elect not to comply with certain corporate
governance requirements, including the requirement that a majority of our directors be independent, as defined in the NYSE American Company
Guide, the requirement that our director nominees must be selected or recommended to the Board for determination, by either a Nomination
Committee comprised solely of independent directors or by a majority of the independent directors, the requirement that we have a formal
written charter or board resolution, as applicable, addressing the nominations process and such related matters as may be required under
the federal securities laws, and the requirement that compensation of the chief executive officer must be determined, or recommended to
the Board for determination, either by a Compensation Committee comprised of independent directors or by a majority of the independent
directors on its Board of Directors and that compensation for all other officers must be determined, or recommended to the Board for determination,
either by such Compensation Committee or a majority of the independent directors on the company’s Board of Directors. Although we
do not intend to rely on the “controlled company” exemption under the NYSE American Company Guide, we could elect to rely
on this exemption in the future. If we elect to rely on the “controlled company” exemption, a majority of the members of our
Board of Directors might not be independent directors and our nominating and corporate governance and compensation committees might not
consist entirely of independent directors. Accordingly, during any time while we remain a controlled company relying on the exemption
and during any transition period following a time when we are no longer a controlled company, you would not have the same protections
afforded to shareholders of companies that are subject to all of the NYSE American corporate governance requirements. Our status as a
controlled company could cause our common stock to look less attractive to certain investors or otherwise harm our trading price