September 18, 2014
NEW YORK (AP) - A federal judge is blocking Apple from conducting a shareholder vote on a package of governance proposals, handing a victory to a rebel investor who is trying to persuade the company to share more of its cash with its investors.
U.S. District Judge Richard Sullivan in New York ruled Friday that Apple was wrong to bundle four amendments to its corporate charter into one proposal for a vote at next Wednesday's annual meeting. He says shareholders should get to vote on the amendments separately.
Greenlight Capital, a hedge fund run by Wall Street maverick David Einhorn, sued Apple over the proposal because it would remove the board's ability to issue preferred stock without shareholder authorization. Einhorn wants the company to issue dividend-bearing class of stock he calls "iPrefs."