Yup, that was what I meant.
But he did volunteer not to receive a salary for 2018 (wait- salary? I thought they said they didn’t have any kind of employment agreement with so why would he get a salary?).
And it’s all fine because:
Pursuant to our related party transactions policy, all additional material related party transactions that we enter into require either (i) the unanimous consent of our audit committee or (ii) the approval of a majority of the members of our board of directors. See “Certain Relationships and Related Party Transactions—Policies and Procedures for Related Party Transactions”.
So that would be the unanimous consent of a bunch of people who are engaged at the whim of Mr Neumann or the majority of another bunch of people who serve at the whim of Mr Neumann - which of those alternatives is of course up to the whim of Mr Neumann.
The prospectus is essentially saying hand over your money to Mr Neumann and trust that he will look after it nicely and give it back to you at some point with some more money - except of course that Mr Neumann will not personally be involved or legally responsible for your money in any way - and Mr Neumann has told you that he has no intention of giving you anything.
I would quite like to see these sorts of businesses turn up on Dragon’s Den.
“So, you want me to give you lots of my money which you are going to use to pay yourself rent on properties you own? You’ve never made any money and have no intention of generating a profit at any time in the foreseeable future? And you’re not even prepared to hand over any significant degree of control over the company? I just give you the money and expect not to get any return?”
