Company: STAK
Filing Date: 2025-11-05
Form Type: 20-F
Source: 0001493152-25-020818
Chunk: 19

Company: STAK Inc.
Filing Date: 2025-11-05
Form: 20-F
Item: Item 3
Chunk 19
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 adversely affect our business, financial condition, and results of operations.
 
Our directors and officers currently own an aggregate of approximately 98.6% of the total voting power.
 
Currently, our directors and officers collectively own an aggregate of approximately 98.6% of the total voting power. These beneficial owners could have significant influence on determining the outcome of any corporate transaction or other matter submitted to the shareholders for approval, including mergers, consolidations, the election of directors and other significant corporate actions. In cases where their interests are aligned and they vote together, these beneficial owners will also have the power to prevent or cause a change in control. Without the consent of some or all of these shareholders, we may be prevented from entering into transactions that could be beneficial to us or our minority shareholders. The interests of these beneficial owners may differ from the interests of our other shareholders. The concentration in the ownership of our Ordinary Shares may cause a material decline in the value thereof.
 

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As a “controlled company” under the rules of the Nasdaq Capital Market, we may choose to exempt our company from certain corporate governance requirements that could have an adverse effect on our public shareholders.
 
We are a “controlled company” as defined under the Nasdaq Stock Market Rules because Mr. Chuanbo Jiang, our CEO and Chairman of the board, is beneficially own 83.7% of our issued and outstanding Class B Ordinary Shares, representing approximately 77.0% of the total voting power.
 
As long as our officers and directors, either individually or in the aggregate, own at least 50% of the voting power of our Company, we are a “controlled company” as defined under Nasdaq Market Place Rules. For so long as we are a controlled company under that definition, we are permitted to elect to rely, and may rely, on certain exemptions from corporate governance rules, including:
 

●                                                                  an                                                              
                    exemption from the rule that a majority of our board of directors must be independent directors;               
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●   an                                                                                                                             
    exemption from the rule that the compensation of our CEO must be determined or recommended solely by independent directors; and
●   an                                                                                                                             
    exemption from the rule that our director nominees must be selected or recommended solely by independent directors.            
 
As a result, you may not have the same protection afforded to shareholders of companies that are subject to these corporate governance requirements.
 
Although we do not intend to rely on the “controlled company” exemption under the Nas