[ClumsyPilot]

Do they really do it?

In the past 40 years several FTSE 250 companies have collapsed, gone bancrupt or suffered some other disaster.

I can't name any example where shareholders replaced upper management before it was too late. Can you?

[drexlspivey]

They do it indirectly via the board of directors, they are the representatives of the shareholders (akin to a representative democracy). It is a common scenario for the shareholders to vote in a new board to replace the existing management.

https://en.wikipedia.org/wiki/Proxy_fight