New Tenancy Agreement definition
Examples of New Tenancy Agreement in a sentence
The lessee under the New Tenancy Agreement is a wholly-owned subsidiary of the Company and is principally engaged in manufacturing and wholesaling of menswear and accessories.
Pursuant to the New Tenancy Agreement, Lilang China may terminate the New Tenancy Agreement at any time during the term of the New Tenancy Agreement by serving not less than one month prior written notice to Jinlang Fujian.
As the Wang Brothers have a material interest in the tenancy arrangement as contemplated under the New Tenancy Agreement, each of the Wang Brothers had abstained from voting in favour of the Board resolution approving the New Tenancy Agreement.
Therefore, the transactions contemplated under the New Tenancy Agreement constitute a continuing connected transaction of the Company pursuant to Chapter 20 of the GEM Listing Rules.
The Directors (including the independent non-executive Directors) consider that the terms of the New Tenancy Agreement and the transactions contemplated thereunder are fair and reasonable, and are on normal commercial terms and in the ordinary course of business of the Company, and are in the interests of the Company and the shareholders of the Company as a whole.
The terms of the New Tenancy Agreement were negotiated on an arm’s length basis and the rental, air-conditioning charges and management fee chargeable under the New Tenancy Agreement were determined with reference to the rental of other premises of Melbourne Plaza as agreed amongst the Company and other tenants recently.
As all of the applicable percentage ratios (other than the profits ratio) in respect of the maximum aggregate amount of rentals and reimbursements payable by the Tenant under the Agreements are, on an annual basis, more than 0.1% but is less than 5%, the transaction contemplated under the New Tenancy Agreement is exempt from independent Shareholders’ approval requirements under Chapter 14A of the Listing Rules.
Accordingly, the entering into of the New Tenancy Agreement and transactions contemplated thereunder constitute continuing connected transactions of the Company under Chapter 14A of the Listing Rules.
As all of the applicable percentage ratios (other than the profits ratio) are less than 25% on an annual basis and each of the annual cap is less than HK$10,000,000, the transactions contemplated under the New Tenancy Agreement will be subject to reporting, announcement and annual review requirements but exempt from circular and Shareholders’ approval requirements under Chapter 14A of the Listing Rules.
The Directors (including the independent non-executive Directors) are of the view that the terms of the New Tenancy Agreement are fair and reasonable and on normal commercial terms, and the entering into of the New Tenancy Agreement is in the ordinary and usual course of business of the Group and in the interests of the Company and the Shareholders as a whole.