Company: FWDI
Filing Date: 2025-11-03
Form Type: 424B5
Source: 0001683168-25-007923
Chunk: 80

Company: Forward Industries, Inc.
Filing Date: 2025-11-03
Form: 424B5
Chunk 80
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 merger, consolidation, recapitalization,
asset sale or disposition of stock, with any “interested shareholder” for a period of five years from the date that the interested
shareholder first became an interested shareholder unless:

| · | the business combination, or the acquisition of stock that resulted in the interested shareholder first becoming             
 an interested shareholder, was approved by the Board prior to the interested shareholder becoming an interested shareholder; |
| · | the business combination is approved by the disinterested shareholders at a meeting of Forward’s shareholders                
 called no earlier than five years after the date that the interested shareholder first became an interested shareholder; or  |
| · | the business combination meets certain “fair price” valuation requirements.                                                  |

An “interested shareholder”
is any person that is the beneficial owner of 20% or more of the outstanding voting stock of Forward or is an affiliate or associate of
Forward that at any time during the prior five years was the beneficial owner, directly or indirectly, of 20% or more of the then outstanding
voting stock of Forward. The definition of “combination” contained in the statute is sufficiently broad to cover virtually
any kind of transaction that would allow a potential acquirer to use the corporation’s assets to finance the acquisition or otherwise
to benefit its own interests rather than the interests of the corporation and its other shareholders.

The effect of New York’s
business combination law is to potentially discourage parties interested in taking control of the Company from doing so if they cannot
obtain the approval of our Board or shareholders.

In addition, under New York
law (a) directors may be removed for cause by vote of the shareholders, and (b) directors may be removed without cause by vote of the
shareholders only if specifically authorized by the Certificate of Incorporation or Bylaws. Further, removal of directors with or without
cause is subject to: (1) if a corporation has cumulative voting, no director may be removed when the votes cast against such director’s
removal would be sufficient to elect such director if voted cumulatively at an election at which the same total number of votes were cast
and the entire Board, or class of directors of which he is a member, were then being elected; and (2) when, pursuant to the certificate
of incorporation, the holders of any class of shares are entitled to elect one or more directors, any director so elected may be removed
only by the vote of the holders of such class. Any such removal requires the affirmative vote of stockholders representing