Company: OSRH
Filing Date: 2025-01-29
Form Type: S-4/A
Source: 0001213900-25-007923
Chunk: 175

Company: OSR Holdings, Inc.
Filing Date: 2025-01-29
Form: S-4/A
Chunk 175
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 its majority owned subsidiary, OSR Holdings, may experience adverse risks and in turn could adversely impact New OSR Holdings’ business, prospects, financial condition, and results of operations and could lead to a decline in the price per share of its common stock. In addition, under Korean law, there are circumstances in which certain executive officers of a company may be investigated or held criminally liable either directly or vicariously for the actions of the company and its executives and employees. For example, complaints alleging infringement of intellectual property rights, breaches of certain Korean laws ( e.g., labor standards laws and fair trade laws), and product -relatedclaims may be investigated and prosecuted as criminal offenses with both the company and the company’s executive officers being named as defendants in such proceedings. As a result of these current and changing risks, OSR Holdings’ executive officers may be named in the future in criminal investigations or proceedings stemming from its operations. In Korea, company executive officers being named in such investigations or proceedings are a common occurrence, even though in practice many such cases result in no liability to the individual. If OSR Holdings’ executive officers were to be named in such criminal proceedings or held either directly or vicariously criminally liable for the actions of OSR Holdings and its executives and employees, New OSR Holdings’ business, financial condition, and results of operations may be harmed. OSR Holdings is subject to certain requirements and restrictions under Korean law that may, in certain circumstances, require it to act in a manner that may not be in New OSR Holdings’ or its stockholders’ best interest. Under applicable Korean law, directors of a Korean company, such as OSR Holdings, owe a fiduciary duty to the company itself rather than to its stockholders. This fiduciary duty obligates directors of a Korean company to perform their duties faithfully for the good of the company as a whole. In addition, while the facts and circumstances 92 of each case will differ, the duty of care required of a director under Korean law may not be the same as the fiduciary duty of a director of a U.S. corporation. Although the “business judgment rule” concept exists in Korea, there is insufficient case law or precedent to provide guidance to the management and stockholders as to how it should be applied or interpreted. As a result, if circumstances arise in which the best interests of OSR Holdings conflicts with the best interests of New OSR Holdings or its stockholders, OSR Holdings may not be permitted under applicable Korean law to act