If you somehow did take control, and the company somehow had enough money to pay you a salary like that, it would be a violation of your fiduciary obligations as a board member to loot the other 50%-1 worth of shareholders of their share of the company. $250k is exorbitant for a company of that size.
The only way I could see you taking control of a company like that without being crushed by the lack of liquidity is if you approached a few penny stock concerns that needed cash to expand and offered to buy 30%+ worth of stock in the company for (and this is the key part) substantially less than the bid price. You'd effectively be underwriting a secondary stock issue, but without the public offering part. Or you could think of it like a VC firm (most promising companies of that valuation are startups anyway). It would have to be a much bigger company (order of $50 million market cap or so) to justify even a $250k salary for a combined board member - C-office executive position. It's not a free lunch.
Sorry to point out the obvious. What wonderous talent or skill could you provide this company while you are sitting "on the board"???
If you were to throw $300k at this company, I reckon that any shareholders currently in the company would sell-up and head for the hills.
BTW: The job would only pay $250k if the company actually made enough to be able to afford it.
IN ADDITION!, according to http://www.asx.com.au/listings/listing-c... the requirements for the company to be listed on ASX include having AT LEAST 300 investors. If the company had 1,000,000,000 shares total, at 0.001 per share, their company would ONLY be worth $1 million. if your pay was 25% of the company worth, assuming you are not the only one, that company would be splitting the other 75% profit with who knows how many other people. The company needs to be making over $1,000,000 profit over the last 3 years, and at least 50% of the company’s shares must be held by parties unrelated to the company and its directors (which, in your case, would be you).
If they hired you and paid you $250k, not only would you be kicked out of the ASX, you would put yourself out of business.
that company probably does not have $250,000 in the bank and you would never get paid anywhere near that and you would need $300,000 to start to buy that many shares, but if you start buying huge chunks, its GUARANTEED the stock price will go up - costing you a LOT more and you won't be able to buy anywhere near enough shares - one person on the Bd of Dir does not have the power to set ONE persons salary
Could I invest into a cheap company on the ASX that is trading 0.001 per share and buy say 300,000,000 shares of a company that has 1,000,000,000 shares in total. With owning 30% of the company they would probably want me on the board wouldn't they? The job would pay like $250,000 which is the average for ASX companies. I would have my investment back in two years? What if I took controlling intrest of the company by buying 500,000,001 of the shares I would be able to vote myself in as a board member and I could change my salary.
