Company: HVIIR
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001741
Chunk: 68

Company: Hennessy Capital Investment Corp. VII
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 68
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 HVII files a bankruptcy or winding-up petition
or an involuntary bankruptcy or winding-up petition is filed against HVII that is not dismissed, the proceeds held in the trust account
could be subject to applicable bankruptcy insolvency law, and may be included in HVII’s bankruptcy or insolvency estate and subject
to the claims of third parties with priority over the claims of HVII’s shareholders. To the extent any bankruptcy or insolvency
claims deplete the trust account, the per-share amount that would otherwise be received by HVII’s shareholders in connection with
its liquidation may be reduced.

HVII’s
shareholders may be held liable for claims by third parties against HVII to the extent of distributions received by them upon redemption
of their shares.

If
HVII is forced to enter into an insolvent liquidation, any distributions received by shareholders could be viewed as an unlawful payment
if it was proved that immediately following the date on which the distribution was made, HVII was unable to pay its debts as they fall
due in the ordinary course of business. As a result, a liquidator could seek to recover some or all amounts received by HVII’s
shareholders. Furthermore, HVII’s directors may be viewed as having breached their fiduciary duties to HVII or its creditors and/or
may have acted in bad faith, thereby exposing themselves and HVII to claims, by paying public shareholders from the trust account prior
to addressing the claims of creditors.

Claims
may be brought against HVII for these reasons. HVII and its directors and officers who knowingly and willfully authorized or permitted
any distribution to be paid out of HVII’s share premium account while HVII was unable to pay its debts as they fall due in the
ordinary course of business would be guilty of an offence and may be liable for a fine of $18,292.68 and imprisonment for five years
in the Cayman Islands.

  39  

HVII
may not hold an annual general meeting until after the consummation of its initial business combination, which could delay the opportunity
for HVII’s shareholders to elect directors.

In
accordance with Nasdaq corporate governance requirements, HVII is not required to hold an annual general meeting until no later than
one year after its first fiscal year end following its listing on Nasdaq. As an exempted company, there is no requirement under the Companies
Act for HVII to hold annual or extraordinary general meetings to appoint directors. Prior to the consummation