Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 42

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 42
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RS, Nevada corporations are prohibited from engaging
in a business combination with interested shareholders unless (i) the combination was approved by the Board before the person became an
interested shareholder; (ii) the combination is approved by a majority of the disinterested shareholders; or (iii) the combination otherwise
meets the requirements specified in Sections 78.411 to 78.444 of the NRS.

For purposes of Section 78.438
of the NRS, an interested shareholder is any person who is (i) the direct or indirect beneficial owner of 10% or more of the voting power
of the outstanding voting shares of the corporation, or (ii) an affiliate or associate of the corporation and at any time within two years
immediately before the date in question was the direct or indirect beneficial owner of 10% or more of the voting power of the then outstanding
shares of the corporation. A Nevada corporation may elect not to be governed by this law.

In the Nevada Reincorporation,
Forward Nevada would elect to opt out of Sections 78.411 to 78.444 of the NRS, which means these anti-takeover protections would not apply
to the Company after the Nevada Reincorporation. This could make it easier for third parties to acquire control of the Company without
Board approval.

How Does the Proposed Nevada Articles of Incorporation of the Forward Nevada Differ from and How Is It Similar to the Existing New York Certificate?

Under the NYBCL and the New York
Bylaws, holders of our common stock have the right to plurality voting in the election of directors. The proposed Nevada Articles of Incorporation
also authorizes holders of Forward Nevada to use plurality voting in the election of directors.

Other differences between the
existing and proposed charters and bylaws are described below in the section titled “Significant Differences Between the Charters
and Bylaws of Forward New York and Forward Nevada and Between the Corporate Laws of New York and Nevada.”

How Is Nevada Corporate Law Different From and Similar to New York Corporate Law?

Generally, Nevada law places
more authority in the hands of the directors and provides directors greater protection from liability, except where there is a breach
of fiduciary duty involving intentional misconduct, fraud, or knowing violation of law, as specified in NRS section 78.138. This increased
protection may limit shareholders’ ability to bring claims against directors compared to New York law. Some of the specific differences
are:

| · | Both New York and