Shareholders elect directors, but cannot tell directors how to act. Shareholders can remove directors for cause Some states authorize shareholders to remove directors for no cause Shareholders act by voting at shareholder meetings. Shareholders are the owners of the corporation. Shareholders invest equity in the corporation and share in the profits and losses through increased or decreased value of their shares or through distribution of dividends Shareholders act by voting at shareholder meetings. Shareholders approve or disapprove fundamental changes Directors Officers Piercing the Corporate Veil Interference with Shareholder Franchise Shareholders Directors Officers Piercing the Corporate Veil Interference with Shareholder Franchise Corporate Structure