“Greenlight Capital and David Einhorn’s victory against Apple in Federal District Court in Manhattan is a small one, serving only to highlight the bizarreness of the entire fight,” Steven M. Davidoff writes for The New York Times. “The odd thing is that the result is actually more of a win for Apple than Mr. Einhorn, and the outcome will probably have a bigger effect on other companies.”
“The bottom line is that, given how this disrupts the ability of a company to amend its charter, the S.E.C. will probably have to clarify things,” Davidoff writes. “If a company now decides to completely rewrite its charter, will every term now have to be broken out for a separate vote? What a hassle.”
Davidoff writes, “Apple really is getting what it wants – which is to not have to add majority voting for directors. And instead of being labeled bad for shareholder governance, the company can blame Mr. Einhorn. If you are shaking your head at this point, so am I. But that is what it’s like in the age of celebrity hedge funds.”
Read more in the full article here.