I don't like a cozy relationship like this between a private and public company. Very easy to siphon off funds to the private company without the transparency required in the public one. I had a previous investment with a similar relationship. Didn't turn out well.
Having said that, I can see the benefit of using that relationship for asset protection. But the shareholder is completely at the mercy of the principals involved, and their intentions.
Of course this has been covered here in one way or another, ad nauseam.