On November 15, 2017, CNT Group Limited received an originating summons dated 14 November 2017, in which the Petitioner, i.e. Chinaculture.com Limited, acting as the plaintiff in the Originating Summons, requests the Court of First Instance of High Court to grant the leave to commence a derivative action (the "Derivative Action") on behalf of the company against Mr. Lam Ting Ball, Paul, Mr. Tsui Ho Chuen, Philip and Mr. Chong Chi Kwan for breach of directors' duties owed to the Company. As the Derivative Action is proposed to be made against Mr. Lam and Mr. Chong as the executive Directors and Mr. Tsui as a non-executive Director, the Board is of the view that the Company's conduct of the Derivative Action and the matters relating thereto should be delegated to an independent board committee (the "Independent Board Committee"). Pursuant to Article 121 of the bye-laws of the Company, the Board has resolved on 16 November 2017 that the Independent Board Committee is established for the purpose of (a) seeking professional legal advice (for itself or on behalf of the Company) on the course of action that may be taken by the Company in relation to the Derivative Action and all matters relating thereto and (b) conducting the Derivative Action and the matters relating thereto. The members of the Independent Board Committee are Mr. Wu Hong Cho and Mr. Danny T Wong, both are independent non-executive Directors. The Independent Board Committee is delegated with such powers, authorities and discretions as necessary or desirable for the purposes.