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Continuing dispute over Apple’s cash £137bn of cash reserves
Apple has cancelled a shareholder vote following a decision to block it by a US judge after a lawsuit was brought against the company by shareholder David Einhorn.
The technology giant had intended for shareholders to vote on plans on whether to abolish the company’s contractual right to issue an unlimited number of preferences shares.
Apple had intended to incorporate this vote with separate proposals about the company’s organisation, which Mr Einhorn said would have been illegal if it had taken place.
Mr Einhorn’s , of hedge fund Greenlight Capital, argues that should Apple should give some of the companies £137bn cash reserves back to shareholders as preferred stock.
Richard Sullivan, a district Judge in New York, ruled that Greenlight “are likely to succeed on the merits and face irreparable harm if the [proposed by Apple] vote on Proposal No. 2 is permitted to proceed”.
Responding to the ruling Steve Dowling, an Apple spokesman, said the company was “disappointed with the court’s ruling” and that their plan to offer shareholders a vote was “part of our efforts to further enhance corporate governance and serve our shareholders’ best interests”.
In a statement Greenlight described Judge Sullivan’s ruling as a “significant win for all Apple shareholders and for good corporate governance”.
Calling Mr Einhorn’s lawsuit a “silly sideshow” Apple’s CEO, Tim Cook, has previously said he found it “bizarre that we would find ourselves being sued for doing something that’s good for shareholders”.
