Company: RAYA
Filing Date: 2025-08-01
Form Type: 424B5
Source: 0001213900-25-070321
Chunk: 186

Company: Erayak Power Solution Group Inc.
Filing Date: 2025-08-01
Form: 424B5
Chunk 186
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 approval of a majority of the outstanding shares
entitled to vote, unless the certificate of incorporation provides otherwise. Subject to the provisions of our articles (which include
the removal of a director by ordinary resolution), the office of a director shall be vacated if (a) he gives notice in writing to us that
he resigns the office of director, (b) he absents himself (without being represented by an alternate director appointed by him) from three
consecutive meetings of the board of directors without special leave of absence from the directors, and they pass a resolution that he
has by reason of such absence vacated office, (c) he dies, becomes bankrupt or makes any arrangement or composition with his creditors
generally, (d) he is found to be or becomes of unsound mind, or (e) all the other directors (being not less than two in number) resolve
that he should be removed as a director.

Transactions with Interested Shareholders

The Delaware General Corporation Law contains
a business combination statute applicable to Delaware public corporations whereby, unless the corporation has specifically elected not
to be governed by such statute by amendment to its certificate of incorporation or bylaws that its shareholders approve, it is prohibited
from engaging in certain business combinations with an “interested shareholder” for three years following the date that such
person becomes an interested shareholder. An interested shareholder generally is a person or a group who or which owns or owned 15% or
more of the target’s outstanding voting stock or who or which is an affiliate or associate of the corporation and owned 15% or more
of the corporation’s outstanding voting stock within the past three years. This has the effect of limiting the ability of a potential
acquirer to make a two-tiered bid for the target in which all shareholders would not be treated equally. The statute does not apply if,
among other things, prior to the date on which such shareholder becomes an interested shareholder, the board of directors approves either
the business combination or the transaction, resulting in the person becoming an interested shareholder. This encourages any potential
acquirer of a Delaware corporation to negotiate the terms of any acquisition transaction with the target’s board of directors.

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The Cayman Islands Companies Act has no comparable
statute. As a result, we cannot avail ourselves of the types of protections afforded by the Delaware business combination statute. However,
although the Cayman Islands Companies Act does not regulate transactions between a company and its significant shareholders, under