Company: GVH
Filing Date: 2025-02-12
Form Type: 20-F
Source: 0001493152-25-006117
Chunk: 59

Company: Globavend Holdings Ltd
Filing Date: 2025-02-12
Form: 20-F
Item: Item 3
Chunk 59
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 fiscal quarter
before that time; and (2) the date on which we have issued more than US$1 billion in non-convertible debt during the prior three-year
period. An emerging growth company may take advantage of specified reduced reporting and other requirements that are otherwise applicable
generally to public companies. These provisions include exemption from the auditor attestation requirement under Section 404 in the assessment
of the emerging growth company’s internal control over financial reporting and permission to delay the adoption of new or revised
accounting standards until such time as those standards apply to private companies.

Compliance with these
rules and regulations increases our legal and financial compliance costs and makes some corporate activities more time-consuming and
costly. After we are no longer an “emerging growth company,” or until five years following the completion of our IPO, whichever
is earlier, we expect to incur significant expenses and devote substantial management effort toward ensuring compliance with the requirements
of Section 404 of Sarbanes-Oxley and the other rules and regulations of the SEC. For example, as a public company, we will be required
to increase the number of independent directors and adopt policies regarding internal controls and disclosure controls and procedures.
We will incur additional costs in obtaining director and officer liability insurance. In addition, we will incur additional costs associated
with our public company reporting requirements. It may also be more difficult for us to find qualified persons to serve on our board
of directors or as executive officers. We are currently evaluating and monitoring developments with respect to these rules and regulations,
and we cannot predict or estimate with any degree of certainty the amount of additional costs we may incur or the timing of such costs.

As a “controlled company”
under the rules of the Nasdaq Capital Market, we may choose to exempt our Company from certain corporate governance requirements, which
could have an adverse effect on our public shareholders.

As of the date of
this annual report, our directors, officers, and principal shareholders hold in aggregate 11,444,790 of our Ordinary Shares, representing
approximately 76.7% of the total voting power. We are therefore a “controlled company” as defined under the Nasdaq Stock
Market Rules.

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Under Rule 4350(c)
of Nasdaq Capital Market Rules, a company of which more than 50% of the voting power is held by an individual, group, or another company
is a “controlled company” and may elect not to comply with certain corporate governance requirements,