Optimal Voting Procedures for Profit Maximizing Firms

Corporate power is exercised by presidents and chairpersons, directors and other officers, as well as in general meetings of stockholders, boards of directors, or specialized committees. Sometimes decisions are delegated to a single functionary. Often they are carried through a voting procedure of a collective assembly. The set of feasible procedures for carrying a collective resolution is large and varicolored. Sometimes, the assembly is governed by the democratic principle of the 'common simple majority rule'.