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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s