Promote Your Attorney Profile on Law.net - Get Found / Earn More!
Airbnb May Soon Be Legal in San Francisco
Airbnb May Soon Be Legal in San Francisco
Facebook Sues DLA Piper for Fraud
Facebook Sues DLA Piper for Fraud
IBM to Pay Globalfoundries 1.5 Billion Dollars for Chip
IBM to Pay Globalfoundries 1.5 Billion Dollars for Chip
Bank of America Profits Plummet in Third Quarter
Bank of America Profits Plummet in Third Quarter
Legal Job Listings

Greenlight Capital Explains Its Stand against Apple

On Friday, Greenlight Capital owner David Einhorn responded to Apple’s filing made on Wednesday, and reiterated his stand that the court should block Apple Inc.’s “Proposal 2” that plans to remove the company’s powers of issuing preferred shares, following Einhorn’s demands that the said powers be used for issuing preferred shares to all current shareholders of Apple.

In his court filings, Einhorn said, “Apple should not be allowed to substitute its judgment for its shareholders’ judgment, and should be enjoined” from allowing the shareholder vote to be staged.

Last week, Greenlight had sued Apple in its effort to compel the company to share more of its $137 billion cash hoard with current shareholders. Greenlight wants Apple to issue perpetual preferred stock with a 4 percent dividend to current shareholders.

Apple wants to get rid the company of the power before such a calamity befalls the company. Until now, Apple was not concerned with the company having the power of issuing preferred stocks at its sole discretion and without shareholder approval.

Get JD Journal in Your Mail
Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




However, now the company seeks to have the power removed citing reports by ISS and Glass Lewis, that getting rid of the power from company constitution can help defend the company from any ostensible takeover bid.

But, Einhorn argued that “In my view, Apple is not a realistic take-over candidate because of, among other things, its enormous market capitalization.”

Another Apple investor, Brian Gralnick has also sued to block both Proposal No.2 and another advisory “say-on-pay” vote on the compensation of executives. Brian maintains that Apple has failed to disclose sufficient details about the manner and reasons by which it awarded restricted stock units to specific executives.

Greenlight Capital Explains Its Stand against Apple by

Tagged: , ,

Posted by on February 18, 2013. Filed under Business News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

 

 

Job of the Day
Senior & Mid Level Employment Defense Attorney
USA-CO-Denver

Messner Reeves LLP- an established, mid-sized firm with offices in Denver, Los Angeles, Las Vegas and New York, seeks a highly experienced, Colorado-licensed Employment Defense trial attorney to join ...

Related Posts: