Company: OSRH
Filing Date: 2025-01-31
Form Type: 424B3
Source: 0001213900-25-008874
Chunk: 174

Company: OSR Holdings, Inc.
Filing Date: 2025-01-31
Form: 424B3
Chunk 174
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 or its stockholders, OSR Holdings may not be permitted under applicable Korean law to act in a manner that is in the best interest of New OSR Holdings or its stockholders. Approval by the board of directors of a Korean company is required for, among other things, all transactions between a director or major stockholder (including a 10% or more stockholder) and the company for the director’s or the major stockholder’s account. As a result, intercompany transactions between New OSR Holdings and OSR Holdings (or any other Korean subsidiary we may own, from time to time), could arise in the future in which the directors of the Korean subsidiary are not able to act in New OSR Holdings or its stockholders’ best interest as a result of competing interests of the subsidiary. Since substantially all of our operations are conducted by OSR Holdings, any such occurrence with respect to OSR Holdings could adversely affect our business, financial condition, and results of operations. OSR Holdings’ transactions with related parties are subject to close scrutiny by the Korean tax authorities, which may result in adverse tax consequences. Under Korean tax law, there is an inherent risk that OSR Holdings’ transactions with its subsidiaries, affiliates or any other person or company that is related to us may be challenged by the Korean tax authorities if such transactions are viewed as having been made on terms that were not on an arm’s -lengthbasis. If the Korean tax authorities determine that any of its transactions with related parties were on other than arm’s -lengthterms, it may not be permitted to deduct as expenses, or may be required to include as taxable income, any amount which is found to be undue financial support between related parties in such transaction, which may have adverse tax consequences for us and, in turn, may adversely affect our business, financial condition, and results of operations. If we are deemed to have a “place of effective management” in Korea, we will be treated as a Korean company for the purpose of Korean corporate income tax with regards to our worldwide income. Under Korean law, a corporation having a “place of effective management” in Korea will be subject to Korean corporate income tax. The “place of effective management” is determined on a case -by -casebasis, taking into account factors such as the place where meetings of the board of directors are usually held, the place where the key executives usually perform their duties, the place where the day -to -daymanagement of senior managers is carried out, and the place where accounting documents are routinely recorded