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Directors have a fiduciary duty to the shareholders and that includes a legal liability if they don’t do their job. That said if the chairman has a controlling majority of the shares they can run the company into the ground if they want to as it’s their money to waste.
Generally if you want to bring investment into a company it will come with strings attached like nominated seats on the board of directors to prevent this sort of thing. Voting shares can be different normal shares or there can be several share types with different levels of voting rights. However the structure of the shares will be disclosed to the board and for a publicly traded company this will be public.
FuglyDuck@lemmy.world 3 days ago
Controlling shareholder usually means they hold a majority of the shares. Meaning that any shareholder action would require their approval to succeed. basically, every share in the company is one vote on such actions. If he owns 51% of the shares, you’re SOL. If he’s like 48%, and just happens to be the largest block, you might be able to push a shareholder action to oust them- by getting the 52% to vote against him (or the CEO.)
That said, it would partially also depend on any corporate bylaws set up within the corporation, or if said CEO was somehow breaking the law, etc.
Chances are, if you start an effort to do so… you’re going to get fired.
out of curiosity, what’s prompting the question?