Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 110

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 110
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 the distribution, or that part of
the distribution (as the case may be) is made in contravention of that section or modified prohibition or restriction, if the distribution
is made in cash, the member is liable to repay the distribution, or that part of the distribution (as the case may be) to the company,
or if the distribution is made otherwise than in cash, the member is liable to pay to the company a sum equal to the value of the distribution
or that part of the distribution (as the case may be) at the time of the distribution. A director who authorized the payment of an unlawful
dividend in breach of his duty may be liable to repay to the company under the common law.

LAWS AND REGULATIONS RELATING TO OUR BUSINESS
IN THE PRC

Regulations Relating to Incorporation, Operation
and Management of Corporate Entities

We conduct business in China
through our wholly-owned PRC subsidiary, Galaxy HR (SZ), which falls within the definition of wholly foreign-owned enterprise under PRC
laws.

The establishment, operation
and management of corporate entities in China are governed by the Company Law of the PRC (the “ Company Law”), which was promulgated
by Standing Committee of the NPC on 29 December 1993 and became effective on 1 July 1994. It was subsequently amended on December 25,
1999, August 28, 2004, October 27, 2005, December 28, 2013 and October 26, 2018. The Company Law also applies to foreign-invested companies.
According to the Company Law, the provisions otherwise prescribed by the laws on foreign investment prevail.

Upon taking effect on January
1, 2020, the Foreign Investment Law of the PRC (the “ Foreign Investment Law”) has replaced the Wholly Foreign- owned Enterprises
Law of the PRC, and became the legal foundation for foreign investment in the PRC.

Any investments conducted
by foreign investors in the PRC shall be subject to the Catalogue of Industries for Encouraged Foreign Investment, the latest version
of which was promulgated by the National Development and Reform Commission and the Ministry of Commerce of the People ’s Republic
of China on December 27, 2020 and became effective on January 27, 2021, and the Special Management Measures for the Market Entry of Foreign
Investment (Negative List) (2021 Version) (the “ Negative List”) which was