Company: GCL
Filing Date: 2025-03-17
Form Type: DRS
Source: 0001213900-25-024502
Chunk: 129

Company: GCL Global Holdings Ltd
Filing Date: 2025-03-17
Form: DRS
Chunk 129
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 the marketing and retail distribution of video games and related products in Malaysia.

Regulations on Business Registration

A person who desires to form a company shall apply
for incorporation, pursuant to the provisions of the Companies Act 2016 of Malaysia (the “Malaysian Companies Act”),
with the Companies Commission of Malaysia. The Local Government Act 1976 of Malaysia empowers every local authority to make, amend or
revoke any by-laws in respect of the local government area, and to grant any licence or permit of any trade, occupation or premises and
such licence shall be subject to such conditions and restrictions as the local authority may prescribe. As such, prior to the commencement
of our business operations in Malaysia, we are required to apply for business premises licenses for each operating premise from the relevant
local authority. We have registered our Malaysia subsidiary in accordance with the Malaysian Companies Act and have obtained the business
premises license from the local authority.

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Regulations on Labor and Employment

Employment and industrial relations in Malaysia
are mainly governed by the Employment Act 1955 of Malaysia (the “Malaysian Employment Act”). The requirements
under the Malaysia Employment Act apply to all employees that enter into a contract of service regardless of wages (except that, for certain
prescribed categories of employees such as employees earning more than RM4,000 per month, provisions in the Malaysia Employment Act relating
to, among other things, overtime payments and termination benefits do not apply). Both employees and employers in Malaysia are required
to contribute toward the Employees Provident Fund, the Employment Insurance System and the Employees Social Security Fund. The contributions
are premised on the statutorily prescribed rates under the Employees Provident Fund Act 1991 of Malaysia, Employment Insurance System
Act 2017 of Malaysia and Employees’ Social Security Fund Act 1969 of Malaysia.

Worker Classification

Under Malaysian law, an “employee” means
a person engaged under a contract of service while an “independent contractor” means a person engaged pursuant to a contract
for services. The Malaysian Employment Act defines “contract of service” as any agreement, whether oral or in writing and
whether express or implied, whereby one person agrees to employ another as an employee and that other agrees to serve his or her employer
as an employee and includes an apprenticeship contract. There is no single legal test to determine whether a person is engaged as an employee
or an independent contractor. The degree of control exercised over