Company: NCL
Filing Date: 2025-12-04
Form Type: 424B3
Source: 0001575872-25-000746
Chunk: 20

Company: Northann Corp.
Filing Date: 2025-12-04
Form: 424B3
Chunk 20
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 as defined
in such rule, subject to specified exceptions. In addition, the NYSE Company Guide require that, subject to specified exceptions: each
member of a listed company’s audit, compensation and nominating committees be independent as defined under the NYSE Company Guide;
audit committee members also satisfy independence criteria set forth in Rule 10A-3 under the Securities Exchange Act of 1934, as amended
(the “Exchange Act”); and compensation committee members also satisfy an additional independence test for compensation committee
members under the NYSE Company Guide.

Our Board has evaluated the
independence of its members based upon the NYSE Company Guide and the Securities and Exchange Commission. Applying these standards, our
Board determined that none of the directors, other than Mr. Li and Mr. Winn, have a relationship that would interfere with the exercise
of independent judgment in carrying out the responsibilities of a director and that each of those directors is “independent”
as that term is defined under Section 803(A)(2) of the NYSE Company Guide. Mr. Li and Mr. Winn are not considered independent because
they are officers of Northann Corp. As such, a majority of our Board is comprised of “independent directors” as defined under
the NYSE Company Guide.

Role of Board in Risk Oversight Process

One of the key functions
of our Board is informed oversight of our risk management process. Our Board does not have a standing risk management committee, but
rather administers this oversight function directly through the Board as a whole, as well as through its standing committees that address
risks inherent in their respective areas of oversight. In particular, our Board is responsible for monitoring and assessing strategic
risk exposure. Our Audit Committee is responsible for reviewing and discussing our major financial risk exposures and the steps our management
has taken to monitor and control these exposures, including guidelines and policies with respect to risk assessment and risk management.
Our Audit Committee also monitors compliance with legal and regulatory requirements and reviews related party transactions, in addition
to oversight of the performance of our external audit function. Our Board monitors the effectiveness of our corporate governance guidelines.
Our Compensation Committee assesses and monitors whether any of our compensation policies and programs has the potential to encourage
excessive risk-taking. The Board believes its leadership structure is consistent with and supports the administration of its risk oversight
function.

Clawback Policy

We maintain a clawback policy
as required by the rules of the NYSE American. Our claw-back policy covers each of our current and former