Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 44

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 44
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ording all shareholders the opportunity to receive the same economic benefits; and                                   |
| · | a non-negotiated acquisition of a controlling interest may put us in default under certain contractual arrangements that prohibit a “change of control” without the prior written consent of the other contracting party. |

Defensive measures encourage
a potential bidder to negotiate with the Board. Despite our belief in its benefits to shareholders, the Nevada Reincorporation may be
disadvantageous to our existing shareholders. For example, we might not approve of a takeover attempt that a majority of shareholders
may deem to be in their best interests or in which shareholders may receive a substantial premium over the then current market value for
their shares. The Nevada Reincorporation could discourage such an offer. As a result, an existing shareholder might wish to participate
in an unsolicited tender offer but not have an opportunity to do so. In addition, to the extent that provisions of Nevada law enable us
to resist a takeover or a change in control, certain features of the Nevada Reincorporation will make it more difficult for shareholders
to change the existing Board and management.

| 31 |

Certain Significant Differences and Similarities between the Corporation Laws of New York and Nevada

Shareholder Derivative Suits

A derivative suit is a legal
action brought by one or more shareholders or shareholders in the name of, and for the benefit of, the corporation, after the corporation
has failed to pursue the claim. Both Nevada and New York law provide that a shareholder bringing a derivative action must have been a
shareholder at the time the claim arose, or must have later acquired the stock by operation of law.

Effectiveness of Nevada Reincorporation

We anticipate that we will cause
the Nevada Reincorporation to become effective as soon as reasonably practicable upon the approval of our shareholders, subject to the
completion of certain legal formalities, including obtaining certain consents and approvals by third parties with respect to certain contracts
to which we are a party and providing certain notices to regulatory authorities. The Merger Agreement provides that it may be terminated
and the Nevada Reincorporation may be abandoned at any time prior to completion by the Board of either the Company or Forward Nevada or
both, notwithstanding any obtained shareholder approvals of the principal terms of the Merger Agreement or its adoption by Forward Nevada’s
sole shareholder. Therefore, the Board could determine whether to delay or not to proceed with the Nevada Reincorporation. Furthermore,
the Merger Agreement may