Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 43

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 43
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 for the shareholders to remove any or all directors without cause, the certificate of incorporation or bylaws must provide for such right. In contrast, Nevada law provides that, unless the articles of incorporation provide otherwise, at least two-thirds of the voting power of a corporation’s issued and outstanding stock is needed to remove any one or all of the directors, with or without cause.                                                                                                                                                                                                            |
| · | Both New York and Nevada law allow shareholders to act by written consent provided that the holders of outstanding stock having the majority of voting power at a meeting consent to the action in writing in lieu of a meeting, except New York law requires the corporation to give prompt notice of the action to shareholders that did not give written consent. Nevada has no such notice requirement, although the Exchange Act overrides state law.                                                                                                                                                                                                                                                                                                                                                                                                                      |
| · | New York law provides that a corporation may declare and pay dividends only out of surplus, or if no surplus exists, out of net profits for the fiscal year the dividend is declared in or the preceding year provided that the corporation’s capital after the dividend payment is not less than the total capital amount represented by the issued and outstanding classes having a preference upon the distribution of assets, unless the certificate of incorporation further restricts. In contrast, Nevada law may make distributions, including dividends, to its shareholders provided that the corporation would be able to pay its debts as they become due and the corporation’s total assets would not be less than the total of its liabilities plus any amount needed if the corporation were to be dissolved to satisfy the preferential rights of shareholders. |

Further Discussion of the Reasons for Reincorporating in Nevada

The Board recommends the Nevada
Reincorporation for several reasons. Generally, we believe that the Nevada Reincorporation will improve our ability to manage the Company
for the benefit of shareholders. Further, Nevada has no state corporate income tax and no taxes on corporate shares.

Favorability of Nevada Law.
Nevada has a modern statutory corporation law, has codified management-friendly standards of care for actions taken in response to takeover
attempts, maintains limited liability protection for a corporation’s directors and officers, and has no state corporate income tax.
These factors all provide the Board and management with greater certainty in discharging their duties and maintaining the success of the
corporation as a whole.

Flexibility of Nevada Law.For many years, Nevada has followed a policy of encouraging corporations to incorporate in that state. It has done so by adopting
and administering comprehensive and flexible corporate laws responsive to the