SOHM Inc (SHMN)

[SLC-JD]

SHMN management has the controlling block, they can do whatever they want.

I don't believe that is accurate. They certainly aren't listed as majority holders in the annual report (BHAT family trust is the single largest shareholder at ~5%).

Moreover, I read the following to mean that whomever holds the preferred stock doesn't have a control block either:

The preferred stock has voting rights equal in all aspects to the number of Common Stock represented by such Preferred Stock on an as converted basis and shall be entitled to vote on any and all matters brought to a vote of shareholders of Common Stock and all matters brought to a vote of shareholders of Preferred Stock. Each share of preferred stock shall be convertible into one percent (1%) of the then issued and outstanding shares of common stock of the Company. The preferred stock has liquidation rights equal to the par value of each share of preferred stock

I may be mistaken, but I read this to mean that if outstanding is 1,575,576,407, the Pref holder has 803,543,967 votes. But this is in addition to the outstanding; in essence, whomever holds the Pref shares (and remember, Shah surrendered them to an unnamed party) can only muster about 1/3 control (hence, my statement about needing to corral some other shareholders to support the action)