Well there would be something that shareholders could do about...

Well there would be something that shareholders could do about it, the problem is most holders at this end of the market are simply too lazy or apathetic to even make an effort to protect what's theirs. Unfortunately that's what these guys count on.

Case in point, the recent SRK sale (more like a giveaway) of the family jewels. The sale got approval with less than 6% of eligible shares voting in favour (most of those no doubt management). Less than 10% of shareholders even bothered to vote at all.