Plastic2Oil Inc (PTOI)

[Rawnoc]

John's had voting majority control before he gave back those 31 million shares so the voting control did not change. However, the share count fell off a cliff.

I believe he intends to make his compensation in the future to be purely cash based on company progress. For now he gets $1.00/year salary.

His preferreds by the way have zero conversion and zero dividend rights. They are similar to a poison pill and other common safeguards to prevent a hostile takeover used by NYSE stocks every day. Please see "dual-class stock" in this link:

http://money.howstuffworks.com/hostile-takeover3.htm

Defenses Against Hostile Takeovers
There are several ways to defend against a hostile takeover. The most effective methods are built-in defensive measures that make a company difficult to take over. These methods are collectively referred to as "shark repellent." Here are a few examples:
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Dual-class stock allows company owners to hold onto voting stock, while the company issues stock with little or no voting rights to the public. That way investors can purchase stocks, but they can't purchase control of the company.

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Please see UPS (NYSE: UPS) for an example of a huge company that went IPO but made sure that the founders retain control. The IPO shares had 1/10th the voting rights per share as the founders.

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Another...

Other corporate charter changes include dual capitalizations. These feature different classes of stock, which afford different voting rights and dividend entitlements to holders of the shares. They often involve one class of super voting rights stock, which usually pay very low dividends. These shares are usually distributed to all shareholders, but those who are interested in augmenting their control, such as managers, may retain it while others may accept a follow-up offer by the company to exchange these shares for regular voting and dividend- paying stock. The end result of such a stock offering/dividend distribution is that increased control is concentrated in the hands of shareholders who typically are more “loyal” to the corporation and who would be less likely to accept an offer from a hostile bidder. SEC and stock exchange rules limit the extent to which companies can issue and trade such shares.

http://articles.directorym.com/Takeover_Defense-a1071368.html