Company: NEGG
Filing Date: 2025-04-28
Form Type: 20-F
Source: 0001213900-25-036055
Chunk: 50

Company: Newegg Commerce, Inc.
Filing Date: 2025-04-28
Form: 20-F
Item: Item 3
Chunk 50
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 provided for under BVI law.

There may be less publicly available information
about us than is regularly published by or about U. S. issuers. Also, the BVI regulations governing the securities of BVI companies may
not be as extensive as those in effect in the United States, and the BVI law and regulations regarding corporate governance matters may
not be as protective of our shareholders as state corporation laws in the United States. Therefore, you may have more difficulty protecting
your interests in connection with actions taken by our directors and officers or our Principal Shareholders than you would as a shareholder
of a corporation incorporated in the United States.

The laws of BVI provide limited protections for
our shareholders, so our shareholders will not have the same options as to recourse in comparison to the United States if the shareholders
are dissatisfied with the conduct of our affairs.

Under the laws of the BVI there is limited statutory
protection of our shareholders other than the provisions of the Companies Act dealing with shareholder remedies. The principal protections
under BVI statutory law are derivative actions, actions brought by one or more shareholders for relief from unfair prejudice, oppression
and unfair discrimination and/or to enforce the Companies Act or the memorandum and articles of association. Shareholders are entitled
to have the affairs of the company conducted in accordance with the Companies Act and the memorandum and articles of association, and
are entitled to payment of the fair value of their respective shares upon dissenting from certain enumerated corporate transactions.

There are common law rights for the protection
of shareholders that may be invoked, largely dependent on English company law, since the common law of the BVI is limited. Under the general
rule pursuant to English company law known as the rule in Foss v. Harbottle, a court will generally refuse to interfere with the management
of a company at the insistence of a minority of its shareholders who express dissatisfaction with the conduct of the company’s affairs
by the majority or the board of directors. However, every shareholder is entitled to seek to have the affairs of the company conducted
properly according to law and the constitutional documents of the company. As such, if those who control the company have persistently
disregarded the requirements of company law or the provisions of the company’s memorandum and articles of association, then the
courts may grant relief. Generally, the areas in which the courts will intervene are the following: (i) a company is acting or proposing
to act illegally or beyond the scope of its authority; (ii