Discuss the theories about who runs modern corporations. Provide a detailed explanation as to which

The theory explains that corporations are mainly being run by shareholders. Below is a diagram showing interaction between the firm/corporation and its shareholders.

The other theory, which can explain who runs modern corporations, is the shareholder theory. The stakeholder theory puts managers of the business as its runners. Freeman, Wicks and Parmar write:

The focus of the stakeholder theory is articulated in two core questions (qtd. In Freeman 1994). First, it asks, what is the purpose of the firm? This encourages managers to articulate the shared sense of the value they create, and what brings its core stakeholders together. This propels the firm forward and allows it to generate outstanding performance, determined both in its purpose and marketplace financial metrics. Second, stakeholder theory asks, what responsibility does the management have to stakeholders? This pushes managers to articulate how they want to do business—specifically what kinds of relationships they want and need to create with their stakeholders to deliver on their purpose.

Given these two theories it appears that both shareholders and the managers have control over the modern corporations.