Company: MEGL
Filing Date: 2025-04-14
Form Type: 20-F
Source: 0001641172-25-004566
Chunk: 8

Company: Magic Empire Global Ltd
Filing Date: 2025-04-14
Form: 20-F
Item: Item 3
Chunk 8
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 could be material
to our operating results or cash flows for a particular period, depending on our results for that period, or could cause us significant
reputational harm, which could harm our business prospects.

  12  

We
are subject to various risks due to violation of obligations and standards that we are subject to, illegal or improper activities committed
by and misconduct of our personnel or third parties.

We
are subject to a number of obligations and standards arising from our business. The violation of these obligations and standards by any
of our directors, officers, employees, agents, clients, or other third parties could materially and adversely affect us and our investors.
For example, we are required to properly handle confidential information. If our directors, officers, employees, agents, clients, or
other third parties were to improperly use or disclose confidential information, we could suffer serious harm to our reputation, financial
position, and existing and future business relationships. We are also subject to the risk of fraud, illegal act, misconduct or other
improper activities committed by our directors, employees, agents, clients or other third parties, such as entering into unauthorized
transactions, improperly using or divulging inside information, recommending transactions not suitable for our clients, engaging in fraudulent
activities, or engaging in improper or illegal. We cannot assure that our procedures and policies would fully prevent or detect illegal
or improper activities in our business operations. If illegal or improper activities transpire and we fail to identify them in a timely
manner, or at all, we will be in breach of the legal and regulatory requirements in Hong Kong and may be subject to regulatory sanction
resulting in financial loss and reputational harm, which would adversely affect our reputation and results of operations.

It
is not always possible to identify and deter fraud, misconduct or errors by directors, officers, employees, agents or external service
providers, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks
or losses. Fraud or misconduct by any of these persons or entities may cause us to suffer significant reputational harm and financial
loss or result in regulatory disciplinary actions. The potential harm to our reputation and to our business caused by such fraud or misconduct
is impossible to quantify.

We
and our directors and officers may from time to time become subject to or involved in various claims, controversies, lawsuits, and legal
proceedings. Claims, lawsuits, and litigations are subject to inherent uncertainties, and we are uncertain whether