Company: FEBO
Filing Date: 2025-05-14
Form Type: 20-F
Source: 0001641172-25-010075
Chunk: 43

Company: Fenbo Holdings Ltd
Filing Date: 2025-05-14
Form: 20-F
Item: Item 3
Chunk 43
---
 our capital requirements and surplus, the
amount of distributions, if any, received by us from our subsidiaries, our financial condition, contractual restrictions and other factors
as determined by our Board of Directors. Accordingly, the return on an investment in our Ordinary Shares will likely depend entirely upon
any future price appreciation of our Ordinary Shares. There is no guarantee that our Ordinary Shares will appreciate in value or even
maintain the price at which an investor may have purchased our shares. An investor may not realize a return on their investment in our
Ordinary Shares and may even lose their entire investment.

  26  

As an exempted company incorporated in the Cayman
Islands, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly
from Nasdaq Capital Market corporate governance listing standards. These practices may afford less protection to shareholders than they
would enjoy if we complied fully with Nasdaq Capital Market corporate governance listing standards.

As a foreign private issuer whose
Ordinary Shares are currently listed on the Nasdaq Capital Market, we rely on a provision in the Nasdaq Capital Market corporate governance
listing standards that allows us to follow Cayman Islands law with regard to certain aspects of corporate governance. This allows us to
follow certain corporate governance practices that differ in significant respects from the corporate governance requirements applicable
to U. S. companies listed on the Nasdaq Capital Market.

For example, we are exempt from
Nasdaq Capital Market regulations that require a listed U. S. company to:

  have a majority of the board of directors consist of independent directors;                                                                                                                           
  require non-management directors to meet on a regular basis without management present;                                                                                                               
  have an independent compensation committee;                                                                                                                                                           
  have an independent nominating committee; and                                                                                                                                                         
  seek shareholder approval for the implementation of certain equity compensation plans and dilutive issuances of Ordinary Shares, such as transactions, other than a public offering, involving th...  

As a foreign private issuer, we
are permitted to follow home country practice in lieu of the above requirements. Our audit committee is required to comply with the provisions
of Rule 10A-3 of the Exchange Act, which is applicable to U. S. companies listed on the Nasdaq Capital Market. Therefore, we have a fully
independent audit committee in accordance with Rule 10A-3 of the Exchange Act. However, because we are a foreign private issuer, our audit
committee is not subject to additional Nasdaq Capital Market corporate governance requirements applicable