Company: ARBB
Filing Date: 2025-10-31
Form Type: 20-F
Source: 0001213900-25-104705
Chunk: 37

Company: ARB IOT Group Ltd
Filing Date: 2025-10-31
Form: 20-F
Item: Item 3
Chunk 37
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 provisions to limit the ability of others to acquire control of our Company or cause us to engage in change-of-control
transactions. These provisions could have the effect of depriving our shareholders of an opportunity to sell their shares at a premium
over prevailing market prices by discouraging third parties from seeking to obtain control of our Company in a tender offer or similar
transaction. For example, our board of directors has the authority, without further action by our shareholders, to issue preferred shares
in one or more series and to fix their designations, powers, preferences, privileges, and relative participating, optional or special
rights and the qualifications, limitations or restrictions, including dividend rights, conversion rights, voting rights, terms of redemption
and liquidation preferences, any or all of which may be greater than the rights associated with our ordinary shares. Preferred shares
could be issued quickly with terms calculated to delay or prevent a change in control of our Company or make removal of management more
difficult. If our board of directors decides to issue preferred shares, the price of our ordinary shares may fall and the voting and other
rights of the holders of our ordinary shares may be materially and adversely affected. In addition, our amended and restated memorandum
and articles of association contain other provisions that could limit the ability of third parties to acquire control of our Company or
cause us to engage in a transaction resulting in a change of control.

There is a risk
that we will be a passive foreign investment company for any taxable year, which could result in adverse U. S. federal income tax consequences
to U. S. investors in our ordinary shares.

In general, a non-U. S.
corporation is a passive foreign investment company, or PFIC, for any taxable year in which (i) 75% or more of its gross income consists
of passive income or (ii) 50% or more of the average quarterly value of its assets consists of assets that produce, or are held for
the production of, passive income. For purposes of the above calculations, a non-U. S. corporation that owns at least 25% by value of the
shares of another corporation is treated as if it held its proportionate share of the assets of the other corporation and received directly
its proportionate share of the income of the other corporation. Passive income generally includes dividends, interest, rents, royalties
and certain gains. Cash is a passive asset for these purposes.

Based on the expected
composition of our income and assets and the value