👀 Copy Legendary Investors' Portfolios in One ClickCopy For Free

Apple shareholders defeat proposal over Chinese app removal policies

Published 02/26/2020, 01:17 PM
© Reuters. FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in New York
AAPL
-
W
-

By Stephen Nellis

(Reuters) - Apple (NASDAQ:AAPL) Inc's shareholders on Wednesday defeated a proposal critical of its removal of apps at the request of the Chinese government, but the proposal drew a much higher proportion of votes than similar proposals in previous years which had gained support only in single-digit percentages.

The proposal had called on the iPhone maker to report whether it has "publicly committed to respect freedom of expression as a human right." Shareholders defeated it, with 59.4% voting against and 40.6% voting in favor.

The proposal highlighted Apple's 2017 removal of virtual private network apps https://www.reuters.com/article/us-china-apple-vpn/apple-says-it-is-removing-vpn-services-from-china-app-store-idUSKBN1AE0BQ from its App Store in China. Such apps allow users to bypass China’s so-called Great Firewall aimed at restricting access to overseas sites.

Apple shareholders have voted down human rights measures related to China in the past. They defeated a 2018 proposal https://www.reuters.com/article/us-apple-shareholders/apple-ceo-downplays-special-dividend-at-shareholder-meeting-idUSKCN1FX2GA that urged Apple to create a human rights panel to oversee issues such as workplace conditions and censorship in China, with 94.4% of shareholders voting against it.

Apple opposed this year's proposal, saying the company already provides extensive information about when it takes down apps at the request of governments around the world and that it follows the laws in countries where it operates.

" (W)hile we may disagree with certain decisions at times, we do not believe it would be in the best interests of our users to simply abandon markets, which would leave consumers with fewer choices and fewer privacy protections," Apple said in its opposition.

Proxy advisory firms Glass Lewis and Institutional Shareholder Services both recommended votes in favor the measure, according to reports from them seen by Reuters.

The freedom of expression proposal was one of six to be voted upon at the company's annual shareholder meeting at Apple's headquarters in Cupertino, California.

By wide margins, shareholders approved Apple's executive pay, existing board of directors and the retention of Ernst & Young as its accounting firm, results that were widely expected.

Shareholders defeated a "proxy access" proposal to allow shareholders to nominate more than one director to Apple's board, with 68.9% voting against and 31.1% voting for. They also voted down a measure to tie executive compensation to environmental sustainability metrics, with 87.9% voting against and 12.1% for.

© Reuters. FILE PHOTO: The Apple Inc. logo is seen hanging at the entrance to the Apple store on 5th Avenue in New York

Apple had opposed both proposals.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.