Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 105

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1
Chunk 105
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 in the future in criminal investigations or proceedings stemming from its operations. In Korea, company executive
officers being named in such investigations or proceedings are a common occurrence, even though in practice many such cases result in
no liability to the individual. If OSR’ executive officers were to be named in such criminal proceedings or held either directly
or vicariously criminally liable for the actions of OSR and its executives and employees, the Company’s business, financial condition,
and results of operations may be harmed.

OSR is subject to certain requirements and restrictions under
Korean law that may, in certain circumstances, require it to act in a manner that may not be in the Company’s or its stockholders’ best
interest.

Under applicable Korean law, directors of a Korean company, such as
OSR, owe a fiduciary duty to the company itself rather than to its stockholders. This fiduciary duty obligates directors of a Korean company
to perform their duties faithfully for the good of the company as a whole. In addition, while the facts and circumstances of each case
will differ, the duty of care required of a director under Korean law may not be the same as the fiduciary duty of a director of a U.S. corporation.
Although the “business judgment rule” concept exists in Korea, there is insufficient case law or precedent to provide guidance
to the management and stockholders as to how it should be applied or interpreted. As a result, if circumstances arise in which the best
interests of OSR conflicts with the best interests of the Company or its stockholders, OSR may not be permitted under applicable Korean
law to act in a manner that is in the best interest of the Company 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 the Company and OSR
(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 the Company or its stockholders’ best interest as a result of competing interests of the subsidiary. Since
substantially all of our operations are conducted by OSR, any such occurrence with respect to OSR could adversely affect our business,
financial