Company: ZDAN
Filing Date: 2025-02-18
Form Type: DRS/A
Source: 0001683168-25-001085
Chunk: 120

Company: Zerolimit Technology Holding Co. Ltd.
Filing Date: 2025-02-18
Form: DRS/A
Chunk 120
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 exemptions, during the
period we remain a controlled company and during any transition period following a time when we are no longer a controlled company, you
would not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements
of Nasdaq. As a “controlled company” our controlling shareholder will have substantial control over corporate matters after
this offering.

Because we are a foreign private issuer and are exempt from certain Nasdaq corporate governance requirements, we may follow certain exemptions from certain corporate governance requirements that could adversely affect our public shareholders.

Nasdaq listing rules require
listed companies to have, among other things, a majority of their board members be independent. As a foreign private issuer, however,
we are permitted to, and may, follow home country practice in lieu of the above requirements, or we may choose to comply with the Nasdaq
requirement within one year of listing. The corporate governance practice in our home country, the Cayman Islands, does not require a
majority of our board to consist of independent directors. Since a majority of our Board of Directors will not consist of independent
directors, fewer board members will be exercising independent judgment and the level of board oversight on the management of our company
may decrease as a result. In addition, the Nasdaq listing rules also require U.S. domestic issuers to have a compensation committee,
a nominating/corporate governance committee composed entirely of independent directors, and an audit committee with a minimum of three
members. As a foreign private issuer, we are not subject to these requirements. The Nasdaq listing rules may require shareholder approval
for certain corporate matters, such as requiring that shareholders be given the opportunity to vote on all equity compensation plans
and material revisions to those plans and certain Ordinary Share issuances. We intend to comply with the requirements of Nasdaq listing
rules in determining whether shareholder approval is required on such matters and to appoint a nominating and corporate governance committee.
However, we may consider following home country practice in lieu of the requirements under Nasdaq listing rules with respect to certain
corporate governance standards which may afford less protection to investors. Accordingly, you would not have the same protections afforded
to shareholders of companies that are subject to all of the corporate governance requirements of Nasdaq. Our controlling shareholder
will have substantial control over corporate matters after this offering.

As a foreign private issuer, we are permitted to adopt certain home country practices in relation to corporate governance matters that differ significantly from the Nasdaq listing standards. These practices