Shareholders are sometimes referred to as ‘residual controllers’ of the company. Four main points support this:
the law requires certain fundamental decisions to be made by the shareholders; whilst the articles normally entrust management to the board of directors they also
usually reserve a right for shareholders to direct the board by special resolution on any specified matter;
if the board is unable to act, power will revert to the shareholders; shareholders have the right to remove directors from office (and usually have the
right to appoint directors).