Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 41

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 41
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 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 legal and business needs of corporations. Historically,
Nevada’s legislature has acted quickly and effectively to meet changing business needs. Further, Nevada’s largest judicial
district has a dedicated business court for commercial litigation to help streamline commercial litigation.

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Nevada as a Corporate Domicile.
Among public companies, Nevada is one of the most common states of incorporation. Many companies have reincorporated in Nevada as we propose
to do. Nevada has a modern and well-developed corporate law with management-friendly provisions.

Increased Ability to Attract and Retain Qualified Directors. The Board believes that a Nevada corporation has certain advantages in attracting qualified
candidates to act as directors and officers.

Both New York and Nevada law
permit a corporation to adopt charter provisions that reduce or limit the monetary liability of directors for breaches of their fiduciary
duty in certain circumstances (except for breaches of the duty of loyalty, acts in bad faith, or transactions involving improper personal
benefits) and provide for indemnification of directors and officers. The frequency of claims and litigation directed against directors
and officers may discourage qualified persons from taking on these positions. The Company believes that, in general, Nevada law provides
(i)