It's a matter of feedback, really. It doesn't matter if a government is selected by the people if the government can control the people more effectively than the people can control the government.
If the company holds very infrequent general meetings and the owners can't schedule extra ones, then the managers are going to rule, irrespective of who "formally" governs the company.
It's like a people's democratic republic: even if the election is fair, the political bureau sets the rules 99% of the time and the congress of deputies only meets once a year - and soon enough the elections end up no longer being fair.