Michelex Corp (fka MLXO)

[sawdin]

I imagine that Mr. Saleem and his group have taken the necessary precautions (e.g., issuing preferred shares which have a multiplier in terms of voting stock).

Here is a recent example:
EXTO

Exit Only, Inc. Retires 1.2 Billion Shares of Common Stock in Preparation for Acquisition; Outstanding Shares Reduced by Nearly 70%, Positions the Company for Strong Growth
9:45a ET March 28, 2011 (Market Wire)

Exit Only, Inc. (PINKSHEETS: EXTO) today announced that its President Diana Shats retired 1.2 billion shares of common stock that she owned in the Company in order to increase shareholder value and to facilitate acquisitions that management has been negotiating. Diana Shats commented, "My goal since my management team assumed the helm at the Company is driven by a unified mandate to increase shareholder value. Toward that end, we have started a new subsidiary entitled Shats Lighting Solutions to house the technology and patents recently acquired. Furthermore, we recognized that the capital structure needed to be refined to accommodate the Company's progressive acquisition strategy in a manner that did not involve any kind of reverse stock split. Accordingly, I decided to retire 1.2 billion shares of my personal stock for the benefit of shareholders."

The retirement of the shares was reflected on the books and records of the Company as of March 24, 2011. No other warrants, rights, options or convertible instruments were issued in connection with the retirement of shares. The only other corporate change was the implementation of an anti-takeover strategy which increased the voting power of the Series A Preferred Shares to 1000 times voting power. The shares still convert on a 1:1 basis to common which would only create an addition 2 million shares of common stock, when and if converted. The increased voting power maintains management's control over the Company despite being reduced in actual ownership. The board accepted the retirement of shares in order to position the Company for a number of acquisitions that can strengthen the Company and shareholder value. The Company presently has just under 541 million shares of common stock outstanding, with 479 million shares in the float.