David Einhorn's Greenlight Capital was handed a meaningful victory Friday in its corporate governance fight against Apple Inc. (Nasdaq: AAPL). A federal judge sided with the hedge fund manger which will prevent the company from putting a proposal to eliminate preferred stock to a vote - Proposal 2. The judge ruled that Apple's proxy was not compliant with SEC's rules as it bundles different matters in the proposal. The ruling could clear the way for Einhorn's 'iPrefs' idea which he said could unlock vast amounts of shareholder value.

"This is a significant win for all Apple shareholders and for good corporate governance," Greenlight Capital said in a statement. "We are pleased the Court has recognized that Apple's proxy is not compliant with the SEC's rules because it bundles different matters in Proposal 2. We look forward to Apple's evaluation of our iPref idea and we encourage fellow shareholders to urge Apple to unlock the significant value residing on its balance sheet."

Yesterday, Einhorn laid out his 'iPrefs' idea in an hour-long conference call. He claimed that by issuing 'iPrefs,' or perpetual preferred stock, to current shareholders Apple could unlock $150 per share or more in shareholder value. This, he claims, would be more valuable than traditional methods like an increased buyback or dividend.

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U.S. Judge grants Greenlight's motion in Apple (AAPL) caseFebruary 22, 2013 3:30 PM Cash Deployment, Cheap iPhones and Expanded Services are 3 Keys for Apple (AAPL) - Morgan StanleyFebruary 22, 2013 10:09 AM David Einhorn's Apple (AAPL) 'iPrefs' PresentationFebruary 21, 2013 3:59 PM