It's common practice when setting up corporate structures that you have a holding company (TSN) and a service entity (TSI). Gary is part of the management team on TSI, so he is also considered an employee to TSI. TSI is the service entity of this structure which has all the funds going in and out of. This is why Gary would be getting paid out of TSI rather than TSN, his holding in TSN is irrelevant to his remuneration.
As for money going from TSI to TSN there are a few ways this could happen, one is as Martyw stated royalties/commissions paid to TSN for IP, dividends or management fees. However as it stands the cash flow in TSN is irrelevant as it doesn't affect the underlying asset of the company which are the shares in TSI.
Hope this helps
TSN Price at posting:
2.8¢ Sentiment: Buy Disclosure: Held
