Company: FORA
Filing Date: 2025-12-04
Form Type: PRE 14A
Source: 0001140361-25-044359
Chunk: 38

Company: Forian Inc.
Filing Date: 2025-12-04
Form: PRE 14A
Chunk 38
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 have a fiduciary duty to act in the best interests of the corporation and its stockholders. This fiduciary responsibility includes the duty of care and the duty of loyalty.                                                                                                                                                                                                                                                                                                                                                                                                       
 The duty of care requires directors to act in a fully informed manner and exercise that degree of care and prudence that would be expected of them in the management of their own affairs.                                                                                                                                                                                                                                                                                                                                                                                                                
 The duty of loyalty requires a director to place the interests of the corporation and its stockholders above any personal interest when making decisions. The duty of loyalty prohibits a director from using their corporate position to realize personal gain at the expense of the corporation. Subsumed within the duty of loyalty is the duty to act in good faith, which requires directors to act honestly and in a manner that is not knowingly unlawful or contrary to public policy. Deliberate indifference or inaction in the face of a known duty to act are hallmarks of bad faith conduct. |     | Maryland has codified fiduciary duties in a statutory standard of conduct as follows: A director of a corporation shall act: (1) in good faith; (2) in a manner the director reasonably believes to be in the best interests of the corporation; and (3) with the care that an ordinarily prudent person in a like position would use under similar circumstances. The same duties apply to officers of a corporation. Maryland directors are entitled to a statutory presumption of compliance with the standard of conduct. Under Maryland law, directors are not subject to any heightened standard of care or level of review under any circumstances. 
 No “common law” fiduciary principles are applied to directors under Maryland law, even in the case of interested party transactions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 Maryland observes common law fiduciary duties with respect to officers of a Maryland corporation. Officers of a Maryland corporation are entitled to                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

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| Delaware                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |     | Maryland                                                                                                                                                                                                                                             |
| Directors’ and officers’ actions are protected by the “business judgment rule,” which presumes that a director’s or officer’s business decision was made on an informed basis, in good faith, and in the honest belief that the action was in the best interest of the corporation. Unless a plaintiff challenging a board action can rebut the business judgment rule, Delaware courts refrain from second guessing board decisions. The business judgment rule recognizes the need to encourage directors to undertake the risks and make the decisions necessary to run a business. 
 When the presumptions of