Question

Say a company's profits drop dramatically and the stockholders are very angry. If company management refuses to do anything about it, can the stockholders do anything about it?

Answer 1

If the profit of the company is dropping dramatically then it may be because of several reason like Industry, Management, Product quality etc. so if management have any rigid point of view that why company's profit decline dramatically then they can try to make understand their shareholders. For example now a days if the profit of company dramatically decrease due to COVID-19 then management can understand their shareholders that this is because of pandamic and there is no fault on the behalf of company.

On the other side if the profit of the company is decreasing due to any reason or shareholders are not ready to listen management clarification then in that case shareholders have a right/power to change the management like director, CEO, Managing Director etc. and also have a right to appoint a person to investigate the reason that why company's profit is declining dramatically.

I hope this clear your doubt.

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