Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 109

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 109
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 provides that
it is an offence for a trader who applies a false trade description to a service supplied or offered to be supplied to a consumer, or
supplies or offers to supply to a consumer a service to which a false trade description is applied.

Sections 13E, 13F, 13G, 13H
and 131 of TDO provide that a trader commits an offence if the trader engages, in relation to a consumer, in a commercial practice that
is a misleading omission, or is aggressive, or constitutes bait advertising, or constitutes a bait and switch, or wrongly accepting payment
for a product.

Any person who commits an
offence under sections 7A, 13E, 13F, 13G, 13H or 131 of TDO shall be liable, on conviction on indictment, to a fine of HKD500,000 (US$64,013)
and to imprisonment for 5 years, and on summary conviction, to a level 6 fine of HKD100,000 (US$12,803) and imprisonment for 2 years.
However, sections 30L and 30M provides that an officer authorized by the Commissioner of Customs and Excise may, with the consent in writing
of the Secretary for Justice, accept a written undertaking from businesses or individuals not to continue, repeat or engage in conduct
that constitutes an offence under the TDO, and on the acceptance of such undertaking, neither the Commissioner of Customs and Excise nor
the authorized officer may commence or continue an investigation or proceedings relating to the matter to which the undertaking relates.

Regulations on Distributions

Companies Ordinance (Chapter
622 of the Laws of Hong Kong) (the “ CO”) provides for prohibition on certain distributions.

According to section 297
of the CO, a company may only make a distribution out of profits available for distribution and a company’s profits available for
distribution are its accumulated, realized profits, so far as not previously utilized by distribution or capitalization, less its accumulated,
realized losses, so far as not previously written off in a reduction or reorganization of capital. A distribution which is in breach of
this provision is unlawful and ultra vires.

According to section 301
of the CO, if a company makes a distribution, or part of a distribution, to one of its members in contravention of section 297 of the
CO and at the time of the distribution, the member knows or has reasonable grounds for believing that