Company: FWDI
Filing Date: 2025-06-20
Form Type: DEF 14A
Source: 0001683168-25-004653
Chunk: 47

Company: Forward Industries, Inc.
Filing Date: 2025-06-20
Form: DEF 14A
Chunk 47
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 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 be amended at any time prior to the date the Nevada Reincorporation is completed, either before or after the
shareholders have voted to adopt this proposal, subject to applicable law.

Significant Differences and Similarities Between the Charters and Bylaws of Forward New York and Forward Nevada and Between the Corporate Laws of New York and Nevada

The following summarizes a comparison
of certain key provisions between the New York Certificate and New York Bylaws and proposed Nevada Articles of Incorporation and Nevada
Bylaws, as well as certain provisions of New York and Nevada corporate laws. The comparison highlights important differences, but is not
intended to list all differences, and is qualified in its entirety by reference to such documents and to the respective General Corporation
Laws of the States of New York and Nevada. Shareholders are encouraged to read the Nevada Articles of Incorporation, the Nevada Bylaws,
the New York Certificate and the New York Bylaws in their entirety. The proposed Nevada Articles of Incorporation and Nevada Bylaws are
attached to this Proxy Statement. Our current New York Certificate, and our New York Bylaws, are filed publicly as exhibits to our periodic
reports with the SEC.

| Provision                    |     | Current New York Provision                                                                                                                                                                            |     | Proposed Change for Reincorporation                                                                                                     |
| Authorized