iPrefs (update)

Seems the District Court has sided with Mr. Einhorn’s. “Proposal No.2” was brought forward by Apple, which would eliminate its power to issue preferred shares without a shareholder vote.

“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.

This will prevent Apple from accepting shareholder votes on Proposal No.2, which had included plans to eliminate its preferred shares.

“It’s going to make managers reluctant to bundle things together, because you’re never going to know when you send them out if there’s an Einhorn out there,” says James Cox, a professor at Duke University School of Law. He is referring to the ruling, it could be a warning for other companies when issuing proxy proposals

More on the story can be found at DealBook, AllThingsD & Reuters. Of course the ruling itself.

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