DESCRIPTION OF THE REGISTRANT'S SECURITIES REGISTERED PURSUANT TO SECTION 12

OF THE SECURITIES EXCHANGE ACT OF 1934

As of December 31, 2022, Diana Shipping Inc. (the “Company”) had five classes of securities registered

under Section 12 of the Securities Exchange Act of 1934, as amended:

(1) Common stock, $0.01 par value (the “common shares”);

(2) Preferred stock purchase rights (the “Preferred Stock Purchase Rights”);

(3) Series C Preferred Shares;

(4) Series D Preferred Shares;

(5) 8.875% Series B Cumulative Redeemable Perpetual Preferred Shares, $0.01 par value (the “Series

B Preferred Shares”); and

(6) Warrants to purchase common stock. 

The following description sets forth certain material provisions of these securities. The following summary

does not purport to be complete and is subject to, and is qualified in its entirety by reference to, the applicable

provisions of (i) the Company’s Amended and Restated Articles of Incorporation, as amended (the “Articles

of Incorporation”) and

(ii) the Company’s Amended and Restated Bylaws (the “Bylaws”), each of which is incorporated by

reference as an exhibit to the Annual Report on Form 20-F of which this Exhibit is a part. We encourage you

to refer to our Articles of Incorporation and Bylaws for additional information.

Please note in this description of securities, “we”, “us”, “our” and “the Company” all refer to Diana Shipping

Inc. and its subsidiaries, unless the context requires otherwise.

DESCRIPTION OF COMMON SHARES

The respective number of common shares issued and outstanding as of the last day of the fiscal year for the

annual report on Form 20-F to which this description is attached or incorporated by reference as an exhibit,

is provided on the cover page of such annual report on Form 20-

F.

Each outstanding share of common stock entitles the holder to one vote on all matters submitted to a vote of

stockholders. Subject to preferences that may be applicable to any outstanding shares of preferred stock,

holders of shares of common stock are entitled to receive ratably all dividends, if any, declared by our board

of directors out of funds legally available for dividends. Upon our dissolution or liquidation or the sale of all

or substantially all of our assets, after payment in full of all amounts required to be paid to creditors and to

the holders of preferred stock having liquidation preferences, if any, the holders of our common stock will

be entitled to receive pro rata our remaining assets available for distribution. Holders of common stock do

not have conversion, redemption or preemptive rights to subscribe to any of our securities. The rights,

preferences and privileges of holders of common stock are subject to the rights of the holders of our preferred

stock.

Voting Rights

Each outstanding common share entitles the holder to one vote on all matters submitted to a vote of

shareholders. At any annual or special general meeting of shareholders where there is a quorum, the

affirmative vote of a majority of the votes cast by holders of shares of stock represented at the meeting shall

be the act of the shareholders. (Under the Bylaws, at all meetings of shareholders except otherwise expressly

provided by law, there must be present in person or proxy shareholders of record holding at least 33 1/3% of

the shares issued and outstanding and entitled to vote at such meeting in order to constitute a quorum.)

Our Bylaws do not confer any conversion, redemption or preemptive rights attached to our common shares

Dividend Rights

Subject to preferences that may be applicable to any outstanding preferred shares, holders of common shares

are entitled to receive ratably all dividends, if any, declared by our board of directors out of funds legally

available for dividends.

Liquidation Rights

Upon our dissolution or liquidation or the sale of all or substantially all of our assets, after payment in full of

all amounts required to be paid to creditors and to the holders of our preferred shares having liquidation

preferences, if any, the holders of our common shares will be entitled to receive pro rata our remaining assets

available for distribution.

Variation of Rights

Generally, the rights or privileges attached to our common shares may be varied or abrogated by the rights

of the holders of our preferred shares, including our existing classes of preferred shares and any preferred

shares we may issue in the future.

Limitations on Ownership

Under Marshall Islands law generally, there are no limitations on the right of non-residents of the Marshall

Islands or owners who are not citizens of the Marshall Islands to hold or vote our common shares.

Anti-takeover Effect of Certain Provisions of our Amended and Restated Articles of In Company and

Bylaws

Several provisions of our amended and restated articles of incorporation and bylaws may have anti-takeover

effects.

These provisions, which are summarized below, are intended to avoid costly takeover battles, lessen our

vulnerability to a hostile change of control and enhance the ability of our board of directors to maximize

stockholder value in connection with any unsolicited offer to acquire us. However, these anti-takeover

provisions could also discourage, delay or prevent (i) the merger or acquisition of our company by means of

a tender offer, a proxy contest or otherwise that a stockholder may consider in its best interest and (ii) the

removal of incumbent officers and directors.

Business Combinations

Our amended and restated articles of incorporation generally prohibit us from entering into a business

combination with an "interested shareholder" for a period of three years following the date on which the

person became an interested shareholder. Interested shareholder is defined, with certain exceptions, as a

person who (i) owns more than 15% of our outstanding voting stock, or (ii) is an affiliate or associate of the

Company that owned more than 15% of our outstanding stock at any time in the prior three years from the

date the determination is being made as to whether he or she is an interested shareholder.

This prohibition does not apply in certain circumstances such as if (i) prior to the person becoming an

interested shareholder, our board of directors approved the business combination or the transaction which

resulted in the person becoming an interested shareholder, or (ii) the person became an interested shareholder

prior to the Company's initial public offering.

Blank Check Preferred Stock

Under the terms of our amended and restated articles of incorporation, our board of directors has authority,

without any further vote or action by our stockholders, to issue up to 25,000,000 shares of blank check

preferred stock. Our board of directors may issue shares of preferred stock on terms calculated to discourage,

delay or prevent a change of control of our company or the removal of our management.

Classified Board of Directors

Our amended and restated articles of incorporation provide for the division of our board of directors into

three classes of directors, with each class as nearly equal in number as possible, serving staggered, three-year

terms. Approximately one-third of our board of directors is elected each year. This classified board provision

could discourage a third party from making a tender offer for our shares or attempting to obtain control of

us. It could also delay stockholders who do not agree with the policies of our board of directors from removing

a majority of our board of directors for two years

.

Election and Removal of Directors

Our amended and restated articles of incorporation prohibit cumulative voting in the election of directors.

Our amended and restated bylaws require parties other than the board of directors to give advance written

notice of nominations for the election of directors. Our amended and restated articles of incorporation also

provide that our directors may be removed only for cause and only upon the affirmative vote of a majority of

the outstanding shares of our capital stock entitled to vote for those directors. These provisions may

discourage, delay or prevent the removal of incumbent officers and directors. The Articles prohibit the use

of cumulative voting to elect Directors.

Limited Actions by Stockholders

Our amended and restated articles of incorporation and bylaws provide that special meetings of the

shareholders may be called by the Board of Directors who shall state the purpose or purposes of the proposed

special meeting. The business transacted at any special meeting shall be limited to the purposes stated in the

notice of such meeting. If there is a failure to hold the annual meeting within a period of ninety (90) days

after the date designated therefor, or if no date has been designated for a period of thirteen (13) months after

the organization of the Corporation or after its last annual meeting, holders of not less than one-fifth of the

shares entitled to vote in an election of directors may, in writing, demand the call of a special meeting in lieu

of the annual meeting specifying the time thereof, which shall not be less than two (2) nor more than three

(3) months from the date of such call. The Chairman, Chief Executive Officer or Secretary of the Corporation

upon receiving the written demand shall promptly give notice of such meeting, or if the Chairman, Chief

Executive Officer or Secretary fails to do so within five (5) business days thereafter, any shareholder signing

such demand may give such notice. Such notice shall state the purpose or purposes of the proposed special

meeting. The business transacted at any special meeting shall be limited to the purposes stated in the notice

of such meeting.

Advance Notice Requirements for Stockholder Proposals and Director Nominations

Our amended and restated bylaws provide that stockholders seeking to nominate candidates for election as

directors or to bring business before an annual meeting of stockholders must provide timely notice of their

proposal in writing to the corporate secretary. Generally, to be timely, a stockholder's notice must be received

at our principal executive offices not less than 90 days nor more than 120 days prior to the date on which we

first mailed our proxy materials for the preceding year's annual meeting. Our bylaws also specify

requirements as to the form and content of a stockholder's notice. These provisions may impede stockholders'

ability to bring matters before an annual meeting of stockholders or make nominations for directors at an

annual meeting of stockholders.

DESCRIPTION OF THE SERIES B PREFERRED SHARES

On February 3, 2014, we filed a Prospectus Statement for the registration of 2,400,000 of our 8.875% Series

B Cumulative Redeemable Perpetual Preferred Shares, par value $0.01 per share, with a liquidation

preference of $25.00 per share.

We have summarized the material terms and conditions of the rights of these Series B Preferred Shares below.

For a complete description of the rights, we encourage you to read the “Description of Registrant’s Securities

to be Registered”, which we have filed as an exhibit to the Form 8-A on February 13, 2014.

Dividends

Under the Agreement, we declared a dividend payment of 8.875% per annum per $25.00 liquidation

preference per share (equal to $2.21875 per annum per share). These dividends accrue and are cumulative

from the date the Series B Cumulative shares are originally issued. The dividends are payable, as and if

declared by the Board on January 15, April 15, July 15 and October 15 of each year.

Liquidation Preference

Holders of the Series B Preferred Shares are entitled to a liquidation preference. Upon the occurrence of a

liquidation, dissolution or winding up of the affairs of the Company, whether voluntary or involuntary (a

“Liquidation Event”), Holders of Series B Preferred Shares shall be entitled to receive out of the assets of the

Company or proceeds thereof legally available for distribution to stockholders of the Company, (i) after

satisfaction of all liabilities, if any, to creditors of the Company, (ii) after all applicable distributions of such

assets or proceeds being made to or set aside for the holders of any Senior Stock then outstanding in respect

of such Liquidation Event, (iii) concurrently with any applicable distributions of such assets or proceeds

being made to or set aside for holders of any Parity Stock then outstanding in respect of such Liquidation

Event and (iv) before any distribution of such assets or proceeds is made

to or set aside for the holders of Common Stock and any other classes or series of Junior Stock as to such

distribution, a liquidating distribution or payment in full redemption of such Series B Preferred Shares in an

amount initially equal

to $25.00 per share in cash, plus an amount equal to accumulated and unpaid dividends thereon to the date

fixed for payment of such amount (whether or not declared).

Voting Rights

In the event that six quarterly dividends, whether consecutive or not, payable on the Series B Preferred Shares

are in arrears, the Holders of Series B Preferred Shares shall have the right, voting as a class together with

holders of any Parity Stock upon which like voting rights have been conferred and are exercisable, at the next

meeting of stockholders called for the election of directors, to elect one member of the Board of Directors,

and the size of the Board of Directors shall be increased as needed to accommodate such change.

Unless the Company shall have received the affirmative vote or consents of the Holders of at least two-thirds

of the outstanding Series B Preferred Shares, voting as a single class, the Company may not adopt any

amendment to the Articles of Incorporation that adversely alters the preferences, powers or rights of the

Series B Preferred Shares.

Unless the Company shall have received the affirmative vote or consent of the Holders of at least two-thirds

of the outstanding Series B Preferred Shares, voting as a class together with holders of any other Parity Stock

upon which like voting rights have been conferred and are exercisable, the Company may not (x) issue any

Parity Stock if the cumulative dividends payable on outstanding Series B Preferred Shares are in arrears or

(y) create or issue any Senior Stock.

Redemption Rights

The Company shall have the right at any time on or after February 14, 2019 to redeem the Series B Preferred

Shares, in whole or from time to time in part, from any funds available for such purpose. Any such redemption

shall occur on a date set by the Company.

DESCRIPTION OF THE SERIES C PREFERRED SHARES

We filed a statement of designations with the Marshall Islands registry establishing our Series C Preferred

Stock, of which 10,675 are issued and outstanding, par value $0.01 per share. The Series C Preferred Stock

will vote with the common shares of the Company, and each share of the Series C Preferred Stock shall

entitle the holder thereof to 1,000 votes on all matters submitted to a vote of the stockholders of the Company.

The Series C Preferred Stock has no dividend or liquidation rights and cannot be transferred without the

consent of the Company except to the holder's affiliates and immediate family members.

For a complete description of the rights, we encourage you to read the “Certificate of Designation of Rights,

Preferences, and Privileges of Series C Preferred Stock of the Company”, which we have filed as exhibit 3.1

to the Form 6-K on February 6, 2019.

DESCRIPTION OF THE SERIES D PREFERRED SHARES

We filed a statement of designations with the Marshall Islands registry establishing our Series D Preferred

Stock, of which 400 are issued and outstanding, par value $0.01 per share. The Series D Preferred Stock has

no dividend or liquidation rights. The Series D Preferred Stock votes with the common shares of the

Company, and each share of the Series D Preferred Stock shall entitle the holder thereof to up to 200,000

votes, on all matters submitted to a vote of the stockholders of the Company, notwithstanding any other

provision of the Statement of Designation of the Series D Preferred Stock, to the extent that the total number

of votes one or more holders of Series D Preferred Stock is entitled to vote (including any voting power of

such holders derived from Series D Preferred Stock, shares of common stock or any other voting security of

the Company issued and outstanding as of the date hereof or that may be issued in the future) on any matter

submitted to a vote of stockholders of the Company would exceed 36.0% of the total number of votes eligible

to be cast on such matter, the total number of votes that holders of Series D Preferred Stock may exercise

derived from the Series D Preferred Stock together with Common Shares and any other voting securities of

the Company beneficially owned by such holder, shall be reduced to 36% of the total number of votes that

may be cast on such matter submitted to a vote of stockholders.

For a complete description of the rights, we encourage you to read the “Statement of Designation of Rights,

Preferences and Privileges of Series D Preferred Stock of the Company”, which we have filed as Exhibit 3.1

to the Form 6-K on September 8, 2023.

DESCRIPTION OF WARRANTS

On December 14, 2023, we issued warrants to purchase common shares (the “Warrants”) to the holders of

record of Common Stock as of the close of business on December 6, 2023 (the “Record Date”) on the terms

and conditions described in the Warrant Agreement (as defined below and attached as exhibit 2.10 to this

annual report). Each holder received one Warrant for every five shares of issued and outstanding shares of

common stock held as of the Record Date (rounded down to the nearest whole number for any fractional

Warrant). Each Warrant entitles the holder to purchase, at the holder’s sole and exclusive election, at the

exercise price, one share of common stock plus, to the extent, described below, the Bonus Share Fraction. A

Bonus Share Fraction entitles a holder to receive an additional 0.5 of a share of common stock for each

Warrant exercised (the “Bonus Share Fraction”) without payment of any additional exercise price. Since the

dividend ex-Date on March 4, 2024, the Bonus Share Fraction was adjusted to 0.51292 of a share of common

stock for each Warrant exercised.

The right to receive the Bonus Share Fraction will expire at 5:00 p.m. New York City time (the “Bonus Share

Expiration Date”) upon the earlier of (i) the date specified by the Registrant upon not less than 20 business

days’ notice and (ii) the first business day following the last day of the first 30 consecutive trading day period

in which the daily VWAP of the shares of common stock has been at least equal to the then applicable trigger

price for at least 20 trading days (whether or not consecutive) (the “Bonus Price Condition”). Any Warrant

exercised with an exercise date after the Bonus Share Expiration Date will not be entitled to any Bonus Share

Fraction. The Company will make a public announcement of the Bonus Share Expiration Date (i) at least 20

business days prior to such date, in the case of the Company setting a Bonus Share Expiration Date and (ii)

prior to market open on the Bonus Share Expiration Date in the case of a Bonus Price Condition.

Unless earlier redeemed, the Warrants will expire and cease to be exercisable at 5:00 p.m. New York City

time on December 14, 2026 (the “Expiration Date”).

In connection with the Warrant distribution, we filed a prospectus supplement, dated December 14, 2023,

pursuant to our existing shelf registration statement on Form F-3 declared effective on July 9, 2021,

registering up to 33,919,605 shares of common stock to be issued upon exercise of the Warrants under the

Securities Act of 1933, as amended.

The Warrants commenced trading on the New York Stock Exchange under the ticker “DSX WS” on

December 14, 2023.

DESCRIPTION OF PREFERRED STOCK PURCHASE RIGHTS

On February 2, 2024, we entered into an Amended and Restated Stockholders Rights Agreement with

Computershare Trust Company, N.A., as Rights Agent, to amend and restate the Stockholders Rights

Agreement, dated January 15, 2016.

Under the Rights Agreement, we declared a dividend payable of one preferred stock purchase right, or Right,

for each share of common stock outstanding at the close of business on January 26, 2016. Each Right entitles

the registered holder to purchase from us one one-thousandth of a share of Series A Participating Preferred

Stock, par value $0.01 per share, at an exercise price of $25.00 per share. The Rights will separate from the

common stock and become exercisable only if a person or group acquires beneficial ownership of 15% or

more of our common stock (including through entry into certain derivative positions) in a transaction not

approved by our board of directors. In that situation, each holder of a Right (other than the acquiring person,

whose Rights will become void and will not be exercisable) will have the right to purchase, upon payment of

the exercise price, a number of shares of our common stock having a then-current market value equal to twice

the exercise price. In addition, if the Company is acquired in a merger or other business combination after an

acquiring person acquires 15% or more of our common stock, each holder of the Right will thereafter have

the right to purchase, upon payment of the exercise price, a number of shares of common stock of the

acquiring person having a then-current market value equal to twice the exercise price. The acquiring person

will not be entitled to exercise these Rights. Until a Right is exercised, the holder of a Right will have no

rights to vote or receive dividends or any other stockholder rights.

The Rights may have anti-takeover effects. The Rights will cause substantial dilution to any person or group

that attempts to acquire us without the approval of our board of directors. As a result, the overall effect of the

Rights may be to render more difficult or discourage any attempt to acquire us. Because our board of directors

can approve a redemption of the Rights or a permitted offer, the Rights should not interfere with a merger or

other business combination approved by our board of directors.

We have summarized the material terms and conditions of the Rights Agreement and the Rights below. For

a complete description of the Rights, we encourage you to read the Rights Agreement, which we have filed

as an exhibit to the registration statement filed with the Commission on February 2, 2024.

Detachment of the Rights

The Rights are attached to all certificates representing our currently outstanding common stock, or, in the

case of uncertificated common shares registered in book entry form, which we refer to as "book entry shares,"

by notation in book entry accounts reflecting ownership, and will attach to all common stock certificates and

book entry shares we issue prior to the Rights distribution date that we describe below. The Rights are not

exercisable until after the Rights distribution date and will expire at the close of business on January 14,

2026, unless we redeem or exchange them earlier as we describe below. The Rights will separate from the

common stock and a Rights distribution date would occur, subject to specified exceptions, on the earlier of

the following two dates:

•

the 10th day after public announcement that a person or group has acquired ownership of 15%

or more of the Company's common stock; or

•

the 10th business day (or such later date as determined by the Company's board of directors)

after a person or group announces a tender or exchange offer which would result in that person

or group holding 15% or more of the Company's common stock.

"Acquiring person" is generally defined in the Rights Agreement as any person, together with all affiliates or

associates, who beneficially owns 15% or more of the Company's common stock. However, the Company,

any subsidiary of the Company or any employee benefit plan of the Company or of any subsidiary of the

Company, or any person holding shares of common stock for or pursuant to the terms of any such plan, are

excluded from the definition of "acquiring person." In addition, persons who beneficially own 15% or more

of the Company's common stock on the effective date of the Rights Agreement are excluded from the

definition of "acquiring person" unless and until such time as such Person shall become the Beneficial Owner

of an aggregate of 18.5% or more of the Company’s then outstanding Common Stock, (excluding shares

acquired pursuant to a grant under a Company equity incentive plan, a dividend or distribution paid or made

by the Company on the outstanding shares of Common Stock in shares of Common Stock or securities

convertible into shares of Common Stock or pursuant to a split or subdivision of the outstanding shares of

Common Stock), and provided further, that Tuscany Shipping Corp. individually or together with one or

more of its Affiliates shall not be or become an “Acquiring Person” as defined herein.

Our board of directors may defer the Rights distribution date in some circumstances, and some inadvertent

acquisitions will not result in a person becoming an acquiring person if the person promptly divests itself of

a sufficient number of shares of common stock.

Until the Rights distribution date:

•

our common stock certificates and book entry shares will evidence the Rights, and the Rights

will be transferable only with those certificates; and

•

any new common stock will be issued with Rights and new certificates or book entry shares,

as applicable, will contain a notation incorporating the Rights Agreement by reference.

As soon as practicable after the Rights distribution date, the Rights agent will mail certificates representing

the Rights to holders of record of common stock at the close of business on that date. After the Rights

distribution date, only separate Rights certificates will represent the Rights.

We will not issue Rights with any shares of common stock we issue after the Rights distribution date, except

as our board of directors may otherwise determine.

Flip-In Event

A "flip-in event" will occur under the Rights Agreement when a person becomes an acquiring person other

than pursuant to certain kinds of permitted offers. An offer is permitted under the Rights Agreement if a

person will become an acquiring person pursuant to a merger or other acquisition agreement that has been

approved by our board of directors prior to that person becoming an acquiring person.

If a flip-in event occurs and we have not previously redeemed the Rights as described under the heading

"Redemption of Rights" below or, if the acquiring person acquires less than 50% of our outstanding common

stock and we do not exchange the Rights as described under the heading "Exchange of Rights" below, each

Right, other than any Right that has become void, as we describe below, will become exercisable at the time

it is no longer redeemable for the number of shares of common stock, or, in some cases, cash, property or

other of our securities, having a current market price equal to two times the exercise price of such right.

When a flip-in event occurs, all Rights that then are, or in some circumstances that were, beneficially owned

by or transferred to an acquiring person or specified related parties will become void in the circumstances

the Rights Agreement specifies.

Transfer of Shares

The Board of Directors has the power and authority to make such rules and regulations as they may deem

expedient concerning the issuance, registration and transfer of shares of the Company’s stock, and may

appoint transfer agents and registrars thereof.

Comparison of Marshall Island Law to Delaware Law

Marshall Islands

Delaware

Sharholder Meetings

Held at a time and place as designated in the

bylaws.

Special meetings of the shareholders may be

called by the board of directors or by such

person or persons as may be authorized by the

articles of incorporation or by the bylaws.

May be held within or without the Marshall

Islands.

Notice:

Whenever shareholders are required to take

any action at a meeting, written notice of the

meeting shall be given which shall state the

place, date and hour of the meeting and,

unless it is an annual meeting, indicate that it

is being issued by or at the direction of the

person calling the meeting. Notice of a

special meeting shall also state the purpose

for which the meeting is called.

A copy of the notice of any meeting shall be

given personally, sent by mail or by

electronic mail not less than 15 nor more than

60 days before the meeting.

May be held at such time or place as

designated in the certificate of incorporation

or the bylaws, or if not so designated, as

determined by the board of directors. Special

meetings of the shareholders may be called by 

the board of directors or by such person or

persons as may be authorized by the

certificate of incorporation or by the bylaws.

May be held within or without Delaware.

Notice:

Whenever shareholders are required to take

any action at a meeting, a written notice of the

meeting shall be given which shall state the

place, if any, date and hour of the meeting,

and the means of remote communication, if

any.

Written notice shall be given not less than 10

nor more than 60 days before the meeting.

Shareholders’ Voting Rights

Unless otherwise provided in the articles of

incorporation, any action required to be taken

at a meeting of shareholders may be taken

without a meeting, without prior notice and

Any action required to be taken at a meeting

of shareholders may be taken without a

meeting if a consent for such action is in

writing and is signed by shareholders having

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without a vote, if a consent in writing, setting

forth the action so taken, is signed by all the

shareholders entitled to vote with respect to

the subject matter thereof, or if the articles of

incorporation so provide, by the holders of

outstanding shares having not less than the

minimum number of votes that would be

necessary to authorize or take such action at a

meeting at which all shares entitled to vote

thereon were present and voted.

Any person authorized to vote may authorize

another person or persons to act for him by

proxy.

Unless otherwise provided in the articles of

incorporation or bylaws, a majority of shares

entitled to vote constitutes a quorum. In no

event shall a quorum consist of fewer than

one-third of the shares entitled to vote at a

meeting.

When a quorum is once present to organize a

meeting, it is not broken by the subsequent

withdrawal of any shareholders.

The articles of incorporation may provide for

cumulative voting in the election of directors.

not fewer than the minimum number of votes

that would be necessary to authorize or take

such action at a meeting at which all shares

entitled to vote thereon were present and

voted. 

Any person authorized to vote may authorize

another person or persons to act for him by

proxy.

For stock corporations, the certificate of

incorporation or bylaws may specify the

number of shares required to constitute a

quorum but in no event shall a quorum consist

of less than one-third of shares entitled to vote

at a meeting. In the absence of such

specifications, a majority of shares entitled to

vote shall constitute a quorum.

When a quorum is once present to organize a

meeting, it is not broken by the subsequent

withdrawal of any shareholders.

The certificate of incorporation may provide

for cumulative voting in the election of

directors. 

Marshall Islands Merger or Consolidation 

Any two or more domestic corporations may

merge into a single corporation if approved

by the board and if authorized by a majority

vote of the holders of outstanding shares at a

shareholder meeting.

Any sale, lease, exchange or other disposition

of all or substantially all the assets of a

corporation, if not made in the corporation’s

usual or regular course of business, once

approved by the board, shall be authorized by

the affirmative vote of two-thirds of the

shares of those entitled to vote at a

shareholder meeting.

Any domestic corporation owning at least

90% of the outstanding shares of each class of

another domestic corporation may merge such

Any two or more corporations existing under

the laws of the state may merge into a single

corporation pursuant to a board resolution and

upon the majority vote by shareholders of

each constituent corporation at an annual or

special meeting.

Every corporation may at any meeting of the

board sell, lease or exchange all or

substantially all of its property and assets as

its board deems expedient and for the best

interests of the corporation when so

authorized by a resolution adopted by the

holders of a majority of the outstanding stock

of the corporation entitled to vote.

Any corporation owning at least 90% of the

outstanding shares of each class of another

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other corporation into itself without the

authorization of the shareholders of any

corporation.

Any mortgage, pledge of or creation of a

security interest in all or any part of the

corporate property may be authorized without

the vote or consent of the shareholders, unless

otherwise provided for in the articles of

incorporation.

corporation may merge the other corporation

into itself and assume all of its obligations

without the vote or consent of shareholders;

however, in case the parent corporation is not

the surviving corporation, the proposed

merger shall be approved by a majority of the

outstanding stock of the parent corporation

entitled to vote at a duly called shareholder

meeting. Any mortgage or pledge of a

corporation’s property and assets may be

authorized without the vote or consent of

shareholders, except to the extent that the

certificate of incorporation otherwise

provides.

Directors 

The board of directors must consist of at least

one member.

The number of board members may be

changed by an amendment to the bylaws, by

the shareholders, or by action of the board

under the specific provisions of a bylaw.

If the board is authorized to change the

number of directors, it can only do so by a

majority of the entire board and so long as no

decrease in the number shall shorten the term

of any incumbent director.

Removal:

Any or all of the directors may be removed

for cause by vote of the shareholders.

If the articles of incorporation or the bylaws

so provide, any or all of the directors may be

removed without cause by vote of the

shareholders.

The board of directors must consist of at least

one member.

The number of board members shall be fixed

by, or in a manner provided by, the bylaws,

unless the certificate of incorporation fixes

the number of directors, in which case a

change in the number shall be made only by

an amendment to the certificate of

incorporation.

If the number of directors is fixed by the

certificate of incorporation, a change in the

number shall be made only by an amendment

of the certificate.

Removal:

Any or all of the directors may be removed,

with or without cause, by the holders of a

majority of the shares entitled to vote unless

the certificate of incorporation otherwise

provides.

In the case of a classified board, shareholders

may effect removal of any or all directors

only for cause. 

Appraisal rights shall be available for the

shares of any class or series of stock of a

corporation in a merger or consolidation,

subject to limited exceptions, such as a

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merger or consolidation of corporations listed

on a national securities exchange in which

listed stock is offered for consideration is (i)

listed on a national securities exchange or (ii)

held of record by more than 2,000 holders.

Dissenters’ Rights of Appraisal 

Shareholders have a right to dissent from any

plan of merger, consolidation or sale of all or

substantially all assets not made in the usual

course of business, and receive payment of

the fair value of their shares. However, the

right of a dissenting shareholder under the

BCA to receive payment of the appraised fair

value of his shares shall not be available for

the shares of any class or series of stock,

which shares or depository receipts in respect

thereof, at the record date fixed to determine

the shareholders entitled to receive notice of

and to vote at the meeting of the shareholders

to act upon the agreement of merger or

consolidation, were either (i) listed on a

securities exchange or admitted for trading on

an interdealer quotation system or (ii) held of

record by more than 2,000 holders. The right

of a dissenting shareholder to receive

payment of the fair value of his or her shares

shall not be available for any shares of stock

of the constituent corporation surviving a

merger if the merger did not require for its

approval the vote of the shareholders of the

surviving corporation.

A holder of any adversely affected shares

who does not vote on or consent in writing to

an amendment to the articles of incorporation

has the right to dissent and to receive

payment for such shares if the amendment:

• Alters or abolishes any preferential

right of any outstanding shares having

preference; or

• Creates, alters, or abolishes any

provision or right in respect to the

redemption of any outstanding shares;

or

In any derivative suit instituted by a

shareholder of a corporation, it shall be

averred in the complaint that the plaintiff was

a shareholder of the corporation at the time of

the transaction of which he complains or that

such shareholder’s stock thereafter devolved

upon such shareholder by operation of law.

Other requirements regarding derivative suits

have been created by judicial decision,

including that a shareholder may not bring a

derivative suit unless he or she first demands

that the corporation sue on its own behalf and

that demand is refused (unless it is shown that

such demand would have been futile).

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• Alters or abolishes any preemptive

right of such holder to acquire shares

or other securities; or

• Excludes or limits the right of such

holder to vote on any matter, except

as such right may be limited by the

voting rights given to new shares then

being authorized of any existing or

new class.

Shareholder’s Derivative Actions

An action may be brought in the right of a

corporation to procure a judgment in its favor,

by a holder of shares or of voting trust

certificates or of a beneficial interest in such

shares or certificates. It shall be made to

appear that the plaintiff is such a holder at the

time of bringing the action and that he was

such a holder at the time of the transaction of

which he complains, or that his shares or his

interest therein devolved upon him by

operation of law. A complaint shall set forth

with particularity the efforts of the plaintiff to

secure the initiation of such action by the

board or the reasons for not making such

effort.

Such action shall not be discontinued,

compromised or settled, without the approval

of the High Court of the Republic of the

Marshall Islands.

Reasonable expenses including attorney’s

fees may be awarded if the action is

successful.

A corporation may require a plaintiff bringing

a derivative suit to give security for

reasonable expenses if the plaintiff owns less

than 5% of any class of outstanding shares or

holds voting trust certificates or a beneficial

interest in shares representing less than 5% of

any class of such shares and the shares, voting

trust certificates or beneficial interest of such

plaintiff has a fair value of $50,000 or less.