Company: IPSI
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001213900-25-026455
Chunk: 31

Company: Innovative Payment Solutions, Inc.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 31
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 committee
consisting of independent directors is a safeguard against self-dealing by company executives. Our Board of Directors is comprised of
one executive officer and two other directors, and absent an independent compensation committee currently determines the compensation
and benefits of our executive officers, administers our employee stock and benefit plans, and reviews policies relating to the compensation
and benefits of our employees. Our lack of an independent compensation committee presents the risk that our executive officers on the
board may have influence over their personal compensation and benefits levels that may not be commensurate with its financial performance.

Limitations on
director and officer liability and indemnification of our officers and directors by our articles of incorporation, as amended, and by-laws
may discourage stockholders from bringing suit against an officer or director.

Our articles of incorporation,
as amended, and bylaws provide, with certain exceptions as permitted by Nevada law, that a director or officer shall not be personally
liable to us or our stockholders for breach of fiduciary duty as a director or officer, unless the director or officer committed both
a breach of fiduciary duty and such breach was accompanied by intentional misconduct, fraud or knowing violation of law. These provisions
may discourage stockholders from bringing suit against a director or officer for breach of fiduciary duty and may reduce the likelihood
of derivative litigation brought by stockholders on behalf of us against a director or officer.

We are responsible
for the indemnification of our officers and directors.

Should our officers
and/or directors require us to contribute to their defense in an action brought against them in their capacity as such, we may be required
to spend significant amounts of our capital. Our articles of incorporation, as amended, and bylaws also provide for the indemnification
of our directors, officers, employees, and agents, under certain circumstances, against attorney’s fees and other expenses incurred
by them in any litigation to which they become a party arising from their association with or activities on behalf of us. In addition,
we have entered into an indemnification agreement with our Chief Executive Officer. This indemnification policy could result in substantial
expenditures, which we may be unable to recoup. If these expenditures are significant or involve issues which result in significant liability
for our key personnel, we may be unable to continue operating as a going concern.

We do not expect
to pay dividends on our common stock in the foreseeable future.

We have not paid cash
dividends on our common stock to date and we do not expect to