Bad decisions or bad management is not illegal, and R/S splits generally do not need SH approval:
The by-laws of a company dictates if a R/S split needs SH approval. or the state Corporate laws (UTAH).
"Although the SEC has authority over a broad range of corporate activity, state corporate law and a company’s articles of incorporation and by-laws generally govern the company’s ability to declare a reverse stock split and whether shareholder approval is required."
News 
Market Data 
Discover 
