The inability of shareholders to influence the decisions of managers, despite overwhelming shareholder support, is a breakdown in what process or mechanism?

Question

Quizplus · Accepted Answer

The inability of shareholders to influence managers despite majority support is a failure in the corporate governance process, which is responsible for ensuring that managers act in the best interests of shareholders. Auditing and public reporting play important roles in corporate governance, but they do not specifically address the issue of shareholder influence over managerial decisions. Public finance is also not directly related to this issue.

The Inability of Shareholders to Influence the Decisions of Managers