Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 44

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 44
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 legal and business needs of corporations. Historically,
Nevada’s legislature has acted quickly and effectively to meet changing business needs. Further, Nevada’s largest judicial
district has a dedicated business court for commercial litigation to help streamline commercial litigation.

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Nevada as a Corporate Domicile.
Among public companies, Nevada is one of the most common states of incorporation. Many companies have reincorporated in Nevada as we propose
to do. Nevada has a modern and well-developed corporate law with management-friendly provisions.

Increased Ability to Attract and Retain Qualified Directors. The Board believes that a Nevada corporation has certain advantages in attracting qualified
candidates to act as directors and officers.

Both New York and Nevada law
permit a corporation to adopt charter provisions that reduce or limit the monetary liability of directors for breaches of their fiduciary
duty in certain circumstances (except for breaches of the duty of loyalty, acts in bad faith, or transactions involving improper personal
benefits) and provide for indemnification of directors and officers. The frequency of claims and litigation directed against directors
and officers may discourage qualified persons from taking on these positions. The Company believes that, in general, Nevada law provides
(i) greater protection to officers than New York law and (ii) broad indemnification for directors and officers.

With clearer corporation laws,
directors and officers should be able to carry out their duties with more assurance that they are acting properly. A more developed and
clearer corporation law should reduce the risk of liability and claims. Potential directors and officers can accept roles with the Company
with less concern for their own financial risk.

To date, no persons invited to
become a director or officer of the Company have declined because it was a New York corporation.

Anti-Takeover Provisions and Possible Effect on Takeover Offers

The Nevada laws and proposed Nevada
Articles of Incorporation contain provisions that may deter unsolicited acquisition proposals by making it more difficult to acquire control
of the Company without Board cooperation. The Board believes these provisions are in the shareholders’ best interests. However, they may
also discourage a third party from proposing a transaction you would approve if given the opportunity to vote on it.

Existing Defensive Measures

In the discharge of its fiduciary
obligations to our shareholders, the Board may consider in the future certain defensive strategies designed to enhance our ability to
negotiate with an unsolicited bidder. We do not currently have in place any defensive measures such as a rights plan other than under
normal