“A federal judge on Friday ordered Apple to halt collecting shareholder votes on a contentious proposal to change some of its corporate charter, handing a victory to the hedge fund manager David Einhorn,” Michael J. de la Merced reports for The New York Times.
“The ruling issued Friday touches on a fairly narrow legal point,” de la Merced reports. “But it signals a clear win by Mr. Einhorn, who has taken up a fight with Apple over using some of its $137 billion cash hoard to make additional payouts to shareholders… ‘Given the language and purpose of the rules, it is plain to the court that Proposal No. 2 impermissibly bundles ‘separate matters’ for shareholder consideration,. Judge Sullivan wrote in his order. His ruling orders Apple to stop accepting shareholder votes on Proposal No. 2, and comes just days before the company’s shareholder meeting next Wednesday.”
de la Merced reports, “The company will now likely have to break up Proposal No. 2 into its separate elements and resubmit them to a vote. The timing of that move isn’t clear.”
Read more in the full article here.
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