Legal issues with backdating stock options keysa machado dating
Yet, for the business lawyer, backdating documents is often not only permissible, but is a regular and necessary part of everyday practice.
The challenge for the business lawyer is determining when backdating is legitimate and when it is not.
Consequently, backdating the document formalizing the agreement to the date the parties struck the deal can be precarious.
If the agreement was reached earlier than the document’s date, the backdating memorializes; if the agreement was not reached until a later date, the backdating misrepresents.
For example, if parties clearly reach an agreement on Dec.
For example, an attorney should never enhance the value of a client’s tax deductions by backdating documents to fraudulently indicate the client purchased the deduction-generating property on an earlier date.
An erroneous assessment of a client’s veracity, even if made innocently, can lead to severe consequences if the backdating perpetrates a fraud.
Prudent lawyers should refrain from backdating if they are uncertain about when the relevant acts took place.
The media’s coverage of the stock option scandals caused the public to strongly associate backdating with corporate malfeasance.
To the layperson, the term “backdating” is merely another word for lying, cheating, and stealing.
Ambiguity in the law can cause seemingly innocuous backdating to inadvertently become inappropriate fabrication.