The control rights of the shareholders of a firm lie in

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Shareholders have the right to elect some members to the board of directors, who are responsible for making important management and strategic decisions for the firm. This gives the shareholders some degree of control over the direction of the company. However, shareholders do not have the right to fire managers at will or force the firm into bankruptcy for non-payment of dividends. Selling their shares is also an option, but it does not constitute a direct exercise of control rights. Shareholders have the right to elect some members of the board of directors, who in turn have the power to make decisions on behalf of the firm and represent the interests of the shareholders. While shareholders have some influence over the direction of the firm through their voting rights, they do not have the ability to fire managers or force the firm into bankruptcy for failing to pay dividends. Selling shares is also an option for shareholders, but this does not necessarily give them control rights over the firm.

The Control Rights of the Shareholders of a Firm Lie