According to a report from Reuters, major Apple investor Greenlight Capital requested to block the proposal – which would require a shareholder vote before preferred stock is issued – because the proposal bundled three distinct proposals into one.
Hedge fund manager Greenlight Capital is invested in two of the three but not the third proposal regarding preferred stock.
In response Apple said it was disappointed by the ruling and confirmed shareholders would not be able to vote on the proposal.
“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,” Apple said in a statement via AllThingsD.
While Greenlight Capital called the decision a win for Apple shareholders and good corporate governance.
Before the judge handed down his decision, Apple CEO Tim Cook defended the company’s position at the recent Goldman Sachs conference, stating “ it doesn’t mean Apple won’t release preferred share. It means we need to go to common shareholders to get their approval.”
“Frankily, I found it bizarre that we are being sued on that is something good for shareholders, but this is the position we’re in. It’s a silly side show.”