Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 46

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 46
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 own behalf in the
future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to us.

According to the BVI
Business Companies Act (as amended), a BVI company may make dividends distribution to the extent that immediately after the distribution,
the value of the company’s assets exceeds its liabilities and that such company is able to pay its debts as they fall due. According
to the Companies Ordinance of Hong Kong, a Hong Kong company may only make a distribution out of profits available for distribution.
Under the current practice of the Inland Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect to dividends paid
by us. The PRC laws and regulations do not currently have any material impact on transfers of cash from Globavend Holdings to our subsidiaries
in Hong Kong or from such subsidiaries to Globavend Holdings, our shareholders, and U. S. investors. However, the PRC government may,
in the future, impose restrictions or limitations on our ability to transfer money out of Hong Kong, to distribute earnings and pay dividends
to and from the other entities within our organization, or to reinvest in our business outside of Hong Kong. Such restrictions and limitations,
if imposed in the future, may delay or hinder the expansion of our business to outside of Hong Kong and may affect our ability to receive
funds from our operating subsidiary in Hong Kong. The promulgation of new laws or regulations, or the new interpretation of existing
laws and regulations, in each case, that restrict or otherwise unfavorably impact the ability or way we conduct our business, could require
us to change certain aspects of our business to ensure compliance, which could decrease demand for our services; reduce revenues; increase
costs; require us to obtain more licenses, permits, approvals, or certificates; or subject us to additional liabilities. To the extent
any new or more stringent measures are required to be implemented, our business, financial condition, and results of operations could
be adversely affected, and such measures could materially decrease the value of our Ordinary Shares, potentially rendering them worthless.
Further, any limitation on the ability of our subsidiaries to pay dividends or make other distributions to us could materially and adversely
limit our ability to grow, make investments or acquisitions that could be beneficial to our business, pay dividends, or otherwise fund
and conduct our business.

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Any lack of effective internal
controls over financial reporting may affect our ability to accurately report our financial results