Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 47

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 3
Chunk 47
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 addition, British Virgin Islands
companies may not have standing to initiate a shareholder derivative action in a federal court of the United States.

Certain corporate governance
practices in the British Virgin Islands, which is our home country, differ significantly from requirements for companies incorporated
in other jurisdictions such as the United States. To the extent we choose to follow home country practices with respect to corporate governance
matters, our shareholders may be afforded less protection than they otherwise would under rules and regulations applicable to U. S. domestic
issuers.

As a result of all of the
above, our public shareholders may have more difficulty in protecting their interests in the face of actions taken by management, members
of the board of directors, or our Controlling Shareholder than they would as public shareholders of a company incorporated in the United
States. For a discussion of significant differences between the provisions of the Companies Act and the laws applicable to companies incorporated
in the United States and their shareholders, see “ Description of Share Capital - Differences in Corporate Law.”

The laws of the BVI may provide less protection
for minority shareholders than those under U. S. law, so minority shareholders may have less recourse than they would under U. S. law if
the shareholders are dissatisfied with the conduct of our affairs.

Under the laws of the BVI,
the rights of minority shareholders are protected by provisions of the BVI Act dealing with shareholder remedies and other remedies available
under common law (in tort or contractual remedies). The principal protection under statutory law is that shareholders may bring an action
to enforce the constitutional documents of the company (i. e. the Memorandum and Articles of Association) as shareholders are entitled
to have the affairs of the company conducted in accordance with the BVI Act and the Memorandum and Articles of Association of the company.
A shareholder may also bring an action under statute if he feels that the affairs of the company have been or will be carried out in a
manner that is unfairly prejudicial or discriminating or oppressive to him. The BVI Act also provides for certain other protections for
minority shareholders, including in respect of investigation of the company and inspection of the company books and records. There are
also common law rights for the protection of shareholders that may be invoked, largely dependent on English common law, since the common
law of the BVI for business companies is limited.

The dual-class
structure of our Ordinary Shares has the effect of concentrating voting control with those shareholders who hold our Class B Ordinary
Shares. This