Apple pulls 'Prop 2' from upcoming proxy vote, says disappointed with court decisionAfter a U.S. federal judge sided with David Einhorn's Greenlight Capital in a lawsuit seeking the injunction of proposal vote scheduled to be held at Apple's upcoming shareholders meeting, the Cupertino, Calif., company removed the contentious "Prop 2" item from the docket.
Apple announced in a statement on Friday that it will be pulling Prop 2 from its annual meeting slated to take place on Feb. 27, reports AllThingsD. Einhorn sought to block a vote on the proposal as it contained an article which revokes the ability of Apple's board members to issue preferred stock, instead putting that power into the hands of shareholders.
We are disappointed with the courts ruling. Proposal #2 is part of our efforts to further enhance corporate governance and serve our shareholders best interests. Unfortunately, due to todays decision, shareholders will not be able to vote on Proposal #2 at our annual meeting next week.
With the announcement, Apple is conforming to Judge Richard Sullivan's decision issued earlier today.
Einhorn wants Apple to issue so-called "iPrefs," or perpetual preferred stock that would pay out a quarterly 50 cents dividend equating to $2 per year. He suggests Apple could extend and enhance the program over time to ultimately offer five iPrefs per share of common stock, doubling the current dividend rate to return some $47 billion of company's swelling $137 billion cash hoard.
While Prop 2 has been removed from next week's annual meeting, Apple is not obligated to issue the iPrefs. It is unclear what the company plans to do regarding Einhorn's pressure, but thus far it has been loath to give in to the hedge fund manager's demands.
On Topic: General
- Apple Stores suffering from 'cult' atmosphere, advancement barriers, says UK staffer
- This week on AI: New MacBook Pro rumors, Apple's answer to Echo, Apple Car charging & more
- Apple details efforts to ease environmental impact at Irish data center
- Jawbone said to end fitness tracker sales, may sell off speaker business [u]
- AirPort Extreme, Time Capsule pulled from U.S. Apple Stores