Company: ILAG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001641172-25-006445
Chunk: 53

Company: Intelligent Living Application Group Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 53
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 actions. The holder of Series A Preferred Shares may take actions
that are not in the best interest of us or our other shareholders. This concentration of ownership may discourage, delay or prevent a
change in control of our company, which could have the effect of depriving our other shareholders of the opportunity to receive a premium
for their shares as part of a sale of our company and may reduce the price of the Ordinary Share. This concentrated control will limit
your ability to influence corporate matters and could discourage others from pursuing any potential merger, takeover or other change of
control transactions that holders of Ordinary Shares may view as beneficial.

We are a “controlled company”
within the meaning of the NASDAQ Stock Market Rules and, as a result, may rely on exemptions from certain corporate governance requirements
that provide protection to shareholders of other companies.

Because more than 50% of the voting power for the election of our directors
are controlled by Mr. Bong Lau, our Chief Executive Officer and Chairman of the board of directors, we are a “controlled company”
as defined under Rule 5615(c)(1) of the Nasdaq Listing Rules. As a “controlled company”, we qualify for, exemptions from several
of Nasdaq’s corporate governance requirements, including:

  an exemption from the rule that a majority of our board of directors must be independent directors; an exemption from the rule that the compensation of our chief executive officer must be deter...  
  an exemption from the rule that our director nominees must be selected or recommended solely by independent directors.                                                                                
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We currently do not intend to rely on the corporate governance exemptions
available to “controlled companies”, however, we may choose to rely on such exemptions in the future. Accordingly, to the
extent that we may choose to rely on one or more of these exemptions, our shareholders would not be afforded the same protections generally
as shareholders of other Nasdaq-listed companies as long as Mr. Bong Lau controls more than 50% of the voting power of our Company and
our board determines to rely upon one or more of such exemptions.

Cayman Islands economic substance requirements
may have an effect on our business and operations.

Pursuant to the International Tax Cooperation (Economic
Substance) Act, 2018 of the Cayman Islands, or the ES Act, that came into force on January 1,