Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 35

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 35
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ORPORATION</div>

Overview of the Proposed Reincorporation

The Board is recommending
that shareholders approve reincorporating the Company from New York to Nevada (the “Nevada Reincorporation”). The Board believes
it is appropriate and in the best interests of the Company and its shareholders to reincorporate in Nevada to position the Company for
better corporate governance and more modern, flexible corporate laws, as detailed below.

The Nevada Reincorporation will
be implemented through the merger of the Company with and into a wholly owned subsidiary corporation incorporated in the State of Nevada
(the “Merger”). Our name following the Nevada Reincorporation will be Forward Industries, Inc. We will file the appropriate
Merger documents with the Department of State of New York and Secretary of State of Nevada.

For purposes of the discussion
below, the Company as it currently exists as a corporation organized under the laws of the government of New York is sometimes referred
to as “Forward New York.”

The Board considered several factors
in reaching this decision to approve the Nevada Reincorporation, such as corporate governance and our ability to raise additional financing.
Our Board was advised of certain differences between New York and Nevada state corporate laws, and other advantages and disadvantages
of the Nevada Reincorporation.

The Board believes that the choice
of state domicile is important because state corporate law governs the internal affairs of a corporation. Management and boards of directors
of corporations look to state corporate law and judicial interpretations of state law to guide their decision-making on 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 Reincorpor