Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 107

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 4
Chunk 107
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 ECO to secure an insurance cover commits an offence and is liable on conviction to a fine of HKD100,000 (US$12,802) and imprisonment
for 2 years.

According to Section 48 of
the ECO, an employer shall not, without the consent of the Commissioner for Labor, terminate, or give notice to terminate, the contract
of service of an employee (who has suffered incapacity in circumstances which entitle him to compensation under the ECO) before occurrence
of certain events. An employer who commits breach of this provision commits an offence and is liable on conviction to a maximum fine of
HKD100,000 (US$12,802).

Competition Ordinance (Chapter 619 of the Laws
of Hong Kong)

The Competition Ordinance
(Chapter 619 of the Laws of Hong Kong) came into force on December 14, 2015 to (i) prohibit conduct that prevents, restricts or distorts
competition in Hong Kong; (ii) prohibit mergers that substantially lessen competition in Hong Kong; and (iii) provide for incidental and
connected matters. The Competition Ordinance prohibits restrictions on competition through three rules, namely, the First Conduct Rule,
the Second Conduct Rule, and the Merger Rule.

The First Conduct Rule provides
that an undertaking must not: (a) make or give effect to an agreement; (b) engage in a concerted practice; or (c) act as a member of an
association of undertakings, or make or give effect to a decision of the association, if the object or effect of the agreement, concerted
practice or decision is to prevent, restrict or distort competition in Hong Kong. The First Conduct Rule applies to an agreement, concerted
practice or decision preventing, restricting or distorting competition in Hong Kong even if the agreement, decision or concerted practice
is made outside of Hong Kong or if any party to the agreement, concerted practice, any undertaking or association of undertakings is outside
Hong Kong.

The Second Conduct Rule
provides that an undertaking having a substantial degree of market power in a market must not abuse that power by engaging in conduct
that has as its object or effect the prevention, restriction or distortion of competition in Hong Kong. Conducts under the Second Conduct
Rule may constitute an abuse if it involves predatory behavior towards competitors or limiting production, markets or technical development
to the prejudice of consumers. When determining whether an undertaking has a substantial degree of market power in a market, factors