Ann: Change in substantial holding , page-86

Yes, could happen Rich - but it's not based on the director's shareholding, but his corporate status. Furthermore, I doubt this has actually been executed more than a couple times in the last decade. I can think of one or two notorious companies where it may have occurred (it can be avoided by some simple paperwork and a half-awake lawyer), and not in penny stocks, but my memory is a bit lax on this - so I won't name them in case I've got it wrong…..
However, that WOULDN'T stop the director from donating his house and any other security to shareholders should the company fail. But I wouldn't hold my breath….That would really be setting a precedent, perhaps a unique one, given the quality and honour of Australian company directors…..