It’s possible as the dividend from founders can be used to finance the opaque related party transaction with the parent company. For instance, Goh may use his money (dividends) to channel them to inflate the earnings via related party transaction with inflated contracts. Since the money will go to the parent, he can choose to pay them out again.
Although he still receives the dividends, albeit lesser as his dividends will be gradually reduced in multiple channels (i.e. employee perks, profit-sharing with other shareholders, expenses, etc). The report stated that his intention is to make the parent company looks extremely profitable then he sells his high valuation share gradually.
I’d suggest to stand at the side and observe how this saga would pan out. There are so much things to learn from it :)
It’d be whole new level of fraud if it turns out to be true and we should seriously consider taking ‘Proceed from Share Sales of Founder’ into account when calculating Capital Raised in Dividend Machines. From this saga, you can see it’s an on-going process that we fine-tune the system to make sure it remains robust in our application. :)