Intel Corp yesterday became the first major California high-tech firm to react to the possibility of Proposition 211 actually being passed in the state on November 5 by eliminating forward-looking statements from its third quarter figures due on Oct ober 14. The proposition, called Attorney-Client Fee Arrangements, Securities Fraud, Initiative Statute, lifts limited liability from the directors of Californian companies so long as just one California resident holds one share in the company and greatly increases the likelihood of stockholder law suits. It should make for very dull announcement on Monday, with the company restricting itself solely to a review of the third quarter. Intel’s warning should be enough to ensure the proposition never gets passed.
