Author's abstract. Approval voting has attracted considerable interest among voting theorists, but they have rarely investigated it in the Arrovian frame-work of social welfare functions (SWF) and never connected it with Arrow’s impossibility theorem. This note explores these two direc- tions....

In absence of markets for externalities, the authors look for governances and conditions under which majority voting among shareholders is likely to give rise to efficient internalization. The central and natural role played by a governance of stakeholders is underlined and benchmarked.