It depends on the context. In this context, it is considered a good thing. If you are new to custodianships, i encourage you to visit ranimaker's page to read on his summary of the stages for a reverse merger. His steps/stages are quite old and in some ways outdated but it is simple and helps you to begin to understand the process.
A dead company goes through many stages. They either stay dead or: shell -> custodian change -> current -> reverse merger -> new entity
All stages bring about different percentages in returns for investors/holders depending on the share structure and value/revenue profile of the new entity. As a lot of unscrupulous people use RMs as a means to gain control of a shell to use as a credit card, i generally favor entry and majority exit before the new entity takes full control.
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