Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 30

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 30
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, in particular mainland
China’s, in June 2019, a bipartisan group of lawmakers introduced bills in both houses of the U. S. Congress that, if passed, would
require the SEC to maintain a list of issuers for which PCAOB is not able to inspect or investigate the audit work performed by a foreign
public accounting firm completely. The proposed Ensuring Quality Information and Transparency for Abroad-Based Listings on our Exchanges
(“ EQUITABLE”) Act prescribes increased disclosure requirements for these issuers and, beginning in 2025, the delisting from
U. S. national securities exchanges, such as the Nasdaq, of issuers included on the SEC’s list for three consecutive years, thus
reducing the time period for triggering the prohibition on trading. It is unclear if this proposed legislation will be enacted. Furthermore,
there have been recent deliberations within the U. S. government regarding potentially limiting or restricting China-based companies from
accessing U. S. capital markets. On May 20, 2020, the U. S. Senate passed the HFCA Act, which includes requirements for the SEC to identify
issuers whose audit work is performed by auditors that the PCAOB is unable to inspect or investigate completely because of a restriction
imposed by a non-U. S. authority in the auditor’s local jurisdiction. The U. S. House of Representatives passed the HFCA Act on December
2, 2020, and the HFCA Act was signed into law on December 18, 2020. Additionally, in July 2020, the U. S. President’s Working Group
on Financial Markets issued recommendations for actions that can be taken by the executive branch, the SEC, the PCAOB, or other federal
agencies and departments with respect to Chinese companies listed on U. S. stock exchanges and their audit firms, in an effort to protect
investors in the United States. In response, on November 23, 2020, the SEC issued guidance highlighting certain risks (and their implications
to U. S. investors) associated with investments in China-based issuers and summarizing enhanced disclosures the SEC recommends China-based
issuers make regarding such risks. On March 24, 2021, the SEC adopted interim final rules relating to the implementation of certain disclosure
and documentation requirements of the HFCA Act. We will be required to comply with these rules if the SEC identifies us as having a “non-inspection”
year