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U.S. SEC rejects Apple bid to block shareholder proposal on forced labour -letter -Breaking

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© Reuters. FILEPHOTO: Apple Inc’s logo was seen outside of the company’s Worldwide Developers Conference 2016 in San Francisco, California. It took place on June 13, 2016. REUTERS/Stephen Lam/File Photo/File Photo

By Stephen Nellis

(Reuters) – The U.S. Securities and Exchange Commission rejected Apple Inc’s (NASDAQ:) request to ignore a shareholder proposal requesting greater transparency from the iPhone maker in relation to its attempts to eliminate forced labour from its supply chain.

An investor group asked Apple’s board earlier this year to produce a report on the protection of workers within its supply chain against forced labour. Apple was asked for details about how it identified sub-suppliers and suppliers that pose a threat to forced labour and what actions Apple took against them.

Reuters reviewed Wednesday’s SEC letter and found that Apple had not blocked the plan. The regulators stated that it “doesn’t appear that the fundamental objectives of the proposal were implemented”.

Apple, barring any agreement with shareholders that made the letter, will be required to vote on the proposed proposal at the annual shareholder meeting next year.

Apple didn’t immediately reply to our request for comment.

Last week, American legislators passed a bill to ban imports from China’s Xinjiang area. This was in response to concerns over forced labor.

Vicky Wyatt from SumOfUs campaign director, stated in Wednesday’s statement that “there is rightfully growing concern at every level of government regarding the concentration camp-like conditions Uyghurs are living under Chinese government control.”

Apple requests the SEC almost every day to eliminate shareholder proposals.

Apple also refused to waive a proposal from shareholders that would have provided more details about Apple’s non-disclosure agreements.

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