Company: NXDT
Filing Date: 2025-06-12
Form Type: S-4
Source: 0001437749-25-020201
Chunk: 26

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-06-12
Form: S-4
Chunk 26
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Subtitle 8

Subtitle 8 of Title 3 of the MGCL permits a Maryland corporation with a class of equity securities registered under the Exchange Act and at least three independent directors to elect to be subject, by provision in its charter or bylaws or a resolution of its board of directors, and notwithstanding any contrary provision in its charter or bylaws, to any or all of five provisions of the MGCL that provide, respectively, for:

| ● | a classified board; |

| ● | a two-thirds vote requirement for removing a director; |

| ● | a requirement that the number of directors be fixed only by vote of the board of directors; |

| ● | a requirement that a vacancy on the board be filled only by the remaining directors in office and (if the board is classified) for the remainder of the full term of the class of directors in which the vacancy occurred; and |

| ● | a majority requirement for the calling of a stockholder-requested special meeting of stockholders. |

The New NXDT Charter provides that, at such time as New NXDT is able to make a Subtitle 8 election, vacancies on New NXDT’s board of directors may be filled only by the remaining directors and that directors elected by New NXDT’s board of directors to fill vacancies will serve for the remainder of the full term of the directorship in which the vacancy occurred. Through provisions in the New NXDT Charter and the New NXDT Bylaws unrelated to Subtitle 8, subject to the terms of any class or series of preferred stock, New NXDT will (a) vest in the board of directors the exclusive power to fix the number of directorships, and (b) require, unless called by the chairman of the board of directors, chief executive officer, president or the board of directors, the written request of stockholders entitled to cast a majority of all of the votes entitled to be cast at such a meeting to call a special meeting. If New NXDT made an election to be subject to the provisions of Subtitle 8 relating to a classified board, the New NXDT board of directors would automatically be classified into three classes with staggered terms of office of three years each. In such instance, the classification and staggered terms of office of the directors would make it more difficult for a third party to gain control of the New NXDT board of directors since at least two annual meetings of stockholders, instead of one, generally would be required to effect a change in the majority of the directors.

Meetings