Company: FWDI
Filing Date: 2025-06-10
Form Type: PRE 14A
Source: 0001683168-25-004370
Chunk: 40

Company: Forward Industries, Inc.
Filing Date: 2025-06-10
Form: PRE 14A
Chunk 40
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In the Nevada Reincorporation,
Forward Nevada would elect to opt out of Sections 78.411 to 78.444 of the NRS, which means these anti-takeover protections would not apply
to the Company after the Nevada Reincorporation. This could make it easier for third parties to acquire control of the Company without
Board approval.

How Does the Proposed Nevada Articles of Incorporation of the Forward Nevada Differ from and How Is It Similar to the Existing New York Certificate?

Under the NYBCL and the New York
Bylaws, holders of our common stock have the right to plurality voting in the election of directors. The proposed Nevada Articles of Incorporation
also authorizes holders of Forward Nevada to use plurality voting in the election of directors.

Other differences between the
existing and proposed charters and bylaws are described below in the section titled “Significant Differences Between the Charters
and Bylaws of Forward New York and Forward Nevada and Between the Corporate Laws of New York and Nevada.”

How Is Nevada Corporate Law Different From and Similar to New York Corporate Law?

Generally, Nevada law places
more authority in the hands of the directors and provides directors greater protection from liability, except where there is a breach
of fiduciary duty involving intentional misconduct, fraud, or knowing violation of law, as specified in NRS section 78.138. This increased
protection may limit shareholders’ ability to bring claims against directors compared to New York law. Some of the specific differences
are:

| · | Both New York and Nevada law provide that shareholders only have the right to cumulate votes in the election of directors if specifically authorized by the corporation’s articles/certificate of incorporation.                                                                                                                                                                  |
| · | Both New York and Nevada law have similar provisions in allowing a corporation to eliminate directors’ personal liability for actions they take in their role as directors and officers. New York law does not contain any statutory allowance to eliminate an officer’s personal liability for actions they take in their role as an officer, but Nevada law, in contrast, does. |
| · | Both New York and Nevada law allow a corporation to indemnify its directors, officers, and other corporate agents if they are sued or incur liability in the course of performing their duties for the corporation. To “indemnify” means to reimburse for personal liability and personal expenses, or to advance funds for expenses as incurred.                                 |

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| · | New York law permits shareholders to inspect the corporation’s shareholder list and corporation’s books