Company: XTKG
Filing Date: 2025-04-25
Form Type: 20-F
Source: 0001213900-25-035626
Chunk: 174

Company: X3 Holdings Co., Ltd.
Filing Date: 2025-04-25
Form: 20-F
Item: Item 10
Chunk 174
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In addition, there are statutory
provisions that facilitate the reconstruction and amalgamation of companies, provided that the arrangement is approved, for a creditor-led
arrangement, by a majority in number of each class of creditors with whom the arrangement is to be made, and, in either a shareholder
or a creditor arrangement, three-fourths in value of each such class of shareholders or creditors, as the case may be, that are present
and voting either in person or by proxy at a meeting, or meetings, convened for that purpose. The convening of the meetings and subsequently
the arrangement must be sanctioned by the Grand Court of the Cayman Islands.

While a dissenting shareholder
has the right to express to the court the view that the transaction ought not to be approved, the court can be expected to approve the
arrangement if it determines that:

  the statutory provisions as to the required majority vote have been met;                                                                  
  the shareholders have been fairly represented at the meeting in question;                                                                 
  the arrangement is such that an intelligent and honest man of that class acting in respect of his interest would reasonably approve; and  
  the arrangement is not one that would more properly be sanctioned under some other provision of the Companies Act.                        

When a take-over offer is
made and accepted by holders of not less than 90% of the shares within four months, the offer, or may, within a two-month period conversing
on the expiration of such four months period, require the holders of the remaining shares to transfer such shares on the terms of the
offer. An objection can be made to the Grand Court of the Cayman Islands but this is unlikely to succeed unless there is evidence of fraud,
bad faith or collusion.

If the arrangement and reconstruction
is thus approved, the dissenting shareholder would have no rights comparable to appraisal rights, which would otherwise ordinarily be
available to the dissenting shareholders of United States corporations, providing rights to receive payment in cash for the judicially
determined value of the shares.

Shareholders’
Suits. In principle, we will normally be the proper plaintiff to sue for a wrong done to us as a company and as a general
rule a derivative action may not be brought by a minority shareholder. However, based on English authorities, which would in all likelihood
be of persuasive authority in the Cayman Islands, there are exceptions to the foregoing principle, including when:

  a company acts or proposes to act illegally or ultra vires and is therefore incapable of rat