Company: LHI
Filing Date: 2025-09-29
Form Type: F-1/A
Source: 0001213900-25-092499
Chunk: 52

Company: Living Homeopathy International Ltd.
Filing Date: 2025-09-29
Form: F-1/A
Chunk 52
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 Living Homeopathy’s subsidiaries incurs debt on its own behalf in the future, the instruments governing the debt may restrict its ability to pay dividends or make other distributions to Living Homeopathy.

Under the current practice of the Inland
Revenue Department of Hong Kong, no tax is payable in Hong Kong in respect of dividends paid by us. See “Taxation — Hong Kong Profits Taxation”on page 116 of this prospectus. Any limitation on the ability of Living Homeopathy
Hong Kong to pay dividends or make other distributions to Living Homeopathy could materially and adversely limit our ability to grow,
make investments or acquisitions that could be beneficial to Living Homeopathy’s business, pay dividends, or otherwise fund and
conduct its business.

Our directors are not subject to a term of office. You may be unable to remove a director of the Company.

A
director of the Company is not subject to a term of office and shall hold office until he
or she is removed or resigned in accordance with our Amended and Restated Memorandum and
Articles of Association, unless such director is appointed on such express terms that he
or she shall automatically retire from office (unless he or she has sooner vacated office)
at the next or a subsequent annual general meeting or upon any specified event or after any
specified period. According to our Amended and Restated Memorandum and Articles of Association,
a director may be removed by an ordinary resolution of our shareholders. An ordinary resolution
to be passed at a general meeting of the shareholders requires the affirmative vote of a
simple majority of all votes which are cast by those shareholders entitled to vote who are
present in person or by proxy at such general meeting. Immediately after the offering, the
two Class B shareholders, consisting of LTO Holdings Ltd. and Qingtian Holdings Ltd., will
own an aggregate of 8,500,000 ordinary shares, consisting of 7,500,000 Class A Ordinary Shares
and 1,000,000 Class B Ordinary Shares, representing 89.11% of our total voting power of our
outstanding ordinary shares. In cases where their interests are aligned and they vote together,
they could control the outcome of the matters submitted to shareholders for approval, including
the removal of any of the directors. Therefore, if the two Class B shareholders vote together
against the removal of any director, you may not be able to remove such director.

Living Homeopathy’s lack of effective internal controls over financial reporting may affect its ability to accurately report its