Apple Removes ‘Proposal 2′ After Ruling

Apple has released a statement saying that it is complying with a court ruling and will be removing Proposal 2 from voting at an investor meeting on February 27th. The ruling came earlier this morning from a Manhattan judge, who ruled that Apple could not hold a proxy vote that would allow the company to stop issuing perpetual preferred shares.

Here’s Apple’s statement:

We are disappointed with the court’s ruling. Proposal #2 is part of our efforts to further enhance corporate governance and serve our shareholders’ best interests. Unfortunately, due to today’s decision, shareholders will not be able to vote on Proposal #2 at our annual meeting next week.

Proposal 2 has been very controversial among Apple’s investors over the past few weeks. David Einhorn of Greenlight Capital has been seriously angry at Apple for the proposition and has even filed a lawsuit. Einhorn wants Apple to out “iPrefs”, or shares which essentially pay out forever. The shares would have a base value and would pay out a dividend of $2 per year. Apple would be able to redeem these shares for face value, and, according to Einhorn, “shareholders should expect to receive 50 cents per quarter, every quarter, forever.”

Image Credit: Le ciel azuré

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