Final answer:
Smaller shareholders can engage in a public company by voting for the board of directors and influence company decisions, with their liability limited to their investment. In the Darkroom Windowshade Company, investors 1 and 2, with 38,000 shares collectively, cannot change top management or control company decisions without additional support.
Step-by-step explanation:
Smaller shareholders can engage themselves in a public company by exercising their rights to vote for the board of directors. Shareholder liability is limited to the amount they have invested, allowing them the opportunity to influence company decisions without financial over-commitment. However, while being a small shareholder does grant voting rights, the real power lies with those who own more shares. For instance, in the scenario where the Darkroom Windowshade Company has 100,000 shares of stock outstanding, the combination of investors 1 and 2, holding 20,000 and 18,000 shares respectively, can yield significant influence over the company decisions.
To effect a change in top management, a majority of the shares need to be voted in a certain way. The minimum number of investors it would take to change the company's top management would depend on how the shareholding is distributed among the remaining shareholders. If investors 1 and 2 agree to vote together, they would hold 38,000 shares, which is not a majority. Therefore, they cannot be certain of always getting their way in how the company is run without the support of additional shareholders.