SEC blocks Apple's bid to hide NDAs from shareholders

SEC blocks Apple’s bid to hide NDAs from shareholders

The U.S. Securities and Exchange Commission has blocked Apple’s attempt to hide non-disclosure agreements and other concealment clauses from its shareholders.

The decision comes after Apple investor Nia Impact Capital filed a proposal in September calling for Apple to publish a report detailing “the potential risks to the company associated with its use of concealment clauses in the context of harassment, discrimination and other unlawful acts.”

Apple loses bid to keep NDAs a secret

Nia Impact Capital’s proposal came after it received documents from former Apple employee Cher Scarlett, who filed a whistleblower complaint in October that alleges Cupertino made false and misleading statements to the SEC.

It seems some investors are now concerned about how Apple could be perceived should its NDAs and other concealment clauses — particularly those made with employees — become public knowledge.

Apple says its policy is “to not use such clauses,” but former employees dispute that. The SEC’s decision means Apple must give investors a vote on Nia Impact Capital’s proposal at its annual shareholder meeting.

Apple declined to comment on the decision when pressed by Reuters.

Apple faces other complaints

Scarlett isn’t the only ex-employee to have filed a whistleblower complaint against Apple. Former engineer Ashley Gjovik also contacted the SEC in October, alleging Apple made false statements to the regulator.

Gjovik also filed complaints with the U.S. Department of Labor and the National Labor Relations Board over the way in which she was allegedly treated by Apple after raising concerns about a hostile and unsafe work environment.

Nia Impact Capital isn’t the only shareholder that has questions about Apple, either. MarketWatch reported Wednesday that SOC Investment Group, the Service Employees International Union and Trillium Asset Management teamed up to demand an Apple civil-rights audit.