Board and Management
Stockholders elect a board of directors, which, in turn, appoints the top management, including the company president and CEO. Stockholders can put pressure on a board to change the management, or vote out board members and replace them with their own candidates.
ANYONE HAVE A WAY OF COMMUNICATING WITH BOARD MEMBERS?
Strategic Decisions
The company management and board of directors must obtain shareholder approval to make strategic decisions that affect a company’s future, such as merger, company sale, changes in the corporate charter, or an increase in the number of authorized shares.
Ownership
A company must always act in the stockholders’ best interest by making sure its decisions enhance shareholder value. Stockholders do not have a say in the day-to-day management of a company, but their collective presence as company owners puts constant pressure on company management. Stockholders can always vote with their feet -- that is, sell the stock if they are unhappy with the financial results. Their selling can put downward pressure on the stock price. If the management owns a substantial stake in the company, a falling stock price affects them directly, and in any event, can jeopardize their jobs if a disgruntled board decides to install a new management to turn the company around.