Jack is a director and shareholder of company A and B
1. Company A holds stock of a company listed on the exchange
2. Company B manages the investment and charges fees for selling stock
3. A receives a non renouncable offer for shares at 2c its trading at 16c
4. Jack holds shares in A and 50% owner of B
5. Jack asks company offering non renouncable shares if A waived rights to offer would they issue them to shareholders including Jack in individual names rather than A
6. Jack has just resigned as director of A and B but removal has not happened yet. Jack also has sold his 50% share of B
7. If this is approved Jack will not have to pay sellers fees when he sells stock
8. Also company B which Jack has sold his 50% of will not collect fees for the sales as they have been issued to individuals.
9. Jack has used the last days as a director to
Redirect shares from the holding company to avoid paying fees to the management company because he has just sold out of the company B and won't get the profit share anymore.
10. Jack has paid no fees and company B has not been able to collect fees due to Jack.