Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 38

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 38
---
 many key issues,
including appropriate governance policies and procedures, satisfaction of fiduciary obligations to shareholders, compliance with financial
and legal requirements in the corporation’s business operations, and consideration of key strategic transactions for the corporation,
including financings, mergers, acquisitions, and divestitures. The Company believes that it would be advantageous to complete the Nevada
Reincorporation as soon as possible.

The Board believes that it is
important for the Company to be able to draw upon the established statutory scheme of Nevada law in making legal and business decisions
while helping to preserve the shareholder rights that our shareholders are accustomed to, in the interest of maximizing long-term shareholder
value. Our Board believes that Nevada offers more protection to corporate officers and favorable indemnification provisions which may
help the Company attract qualified officers and directors and potentially lower any future litigation costs. After careful consideration,
the Board believes that it is in the best interests of the Company and its shareholders to complete the Nevada Reincorporation.

In order to reincorporate in Nevada,
we recently formed a Nevada subsidiary and will merge the Company into it with the subsidiary being the surviving corporation.

Shareholders are urged to
read this Information Statement carefully, including all of the related appendices attached to this Proxy Statement. The following discussion
summarizes material provisions of the Nevada Reincorporation and is subject to and qualified in its entirety by the Merger Agreement in
substantially the form attached hereto as Annex A (the “Merger Agreement”), the Nevada Articles of Incorporation in
substantially the form attached hereto as Annex B; and the Nevada Bylaws in substantially the form attached hereto as Annex C. Prior to the consummation of the Nevada Reincorporation, the Company will file with the Secretary of State of the State of Nevada:
(i) the Nevada Articles of Incorporation, and (ii) the Nevada Certificate of Designation, Preference and Rights (the “Certificate
of Designation”) of the Series A-1 Convertible Preferred Stock (the “Series A-1”) and Series B Convertible Preferred
Stock (the “Series B”), respectively. The Certificate of Designations for the Series A-1 and Series B are substantially similar
to the Certificate of Designations with respect to the Series A-1 and Series B other than changes to conform the comparable provisions
under New York law to the applicable provisions under Nevada law. Copies of our current New York Certificate of Incorporation (“New
York Certificate”), current New York Certificate