Company: ZNOG
Filing Date: 2025-03-28
Form Type: PRE 14A
Source: 0001437749-25-009798
Chunk: 74

Company: ZION OIL & GAS INC
Filing Date: 2025-03-28
Form: PRE 14A
Chunk 74
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 governance, and litigation rights of stockholders (See Annex G).

The Texas Redomestication Proposal will effect a positive change in the quorum requirement for all meetings of stockholders. The presence, in person or by proxy, of the holders of thirty-five percent (35%) of the outstanding shares of the Texas Company’s stock entitled to vote will be required to constitute a quorum at any meeting of the Company’s stockholders. A majority of the outstanding shares of the Company’s Delaware stock entitled to vote is required to constitute a quorum at any meeting of Delaware’s stockholders. The Board believes that it is in the Company’s best interest to decrease the quorum requirement for all meetings of stockholders. With over 45,000 shareholders in approximately 60 different countries, the Board believes that without decreasing the quorum requirement, there is an increasing possibility that the Company will not be able to obtain a quorum at future stockholder meetings, thus hindering the Company’s ability to conduct business. It has become increasingly more difficult to obtain the current quorum as contained in the Delaware Bylaws at stockholder meetings and as a result the Company’s ability to conduct business may become impaired.

Executive management and our corporate office are based in Dallas, Texas. By comparison, we have no operations in Delaware. Our executives and management do not operate out of Delaware. We do not have our Board meetings in Delaware, and the Board does not visit Delaware. It was chosen as our state of incorporation solely because of its legal framework. As discussed above, the Board found no advantage to remaining incorporated in Delaware that justifies a split between the Company’s legal home and its physical home.

Governance Rights. The Board concluded that governance rights are effectively the same in both states. For example, both Delaware and Texas have similar rules on classified boards, the removal of directors, charter and bylaw amendments, blank check preferred stock, stock buybacks, dividends, and appraisal. Where there may appear to be distinctions, the Board concluded that: most were differences in default rules that could be resolved in a Texas charter and bylaws.

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Litigation Rights. The Board identified no areas in which Texas and Delaware law meaningfully diverged on matters of substance. In most areas the Board examined, Texas and Delaware law apply essentially the same substantive rule, though Texas sometimes articulates it a bit differently. These include fiduciary duties owed to the corporation and the stockholders collectively, the corporate opportunities doctrine, director exculpation