Final answer:
Shareholders of a public company have the right to pursue legal actions against the company's management for breach of fiduciary duty, seek an injunction, or demand management changes. Shareholder liability is limited to their investment, but they can exert influence through voting for the board of directors. The extent of influence depends on the number of shares owned and the percentage of votes they represent.
Step-by-step explanation:
Shareholders in a public company may pursue legal actions against management if they believe that the management has breached its fiduciary duty to maximize profits and act in the best interest of the shareholders. These legal actions can include filing a lawsuit for breach of fiduciary duty, seeking an injunction to stop certain actions of the management, or demanding changes to the management if it fails to perform duties lawfully. Shareholder liability is indeed limited to the amount they have invested in the corporation; however, they can use their voting power to influence the company's governance, especially during the election of the board of directors, who oversee the company's management.
Given the scenario where shareholders vote to change the company's top management, as in the Darkroom Window shade Company example, it shows the direct influence shareholders have based on their share of ownership. The minimum number of investors required to change the company's top management would depend on the shareholders' agreement and the percentage of votes they collectively hold. For instance, if investors 1 and 2, owning 20,000 and 18,000 shares respectively, vote together, they would hold a combined 38% of the company's shares. This combined voting power could position them strongly, but not guarantee absolute control without support from other shareholders if more than 50% of the voting power is needed for certain decisions.