Preventing backdating of stag dating
Even when dealing with a trustworthy, longstanding client, an attorney should not backdate documents without first seeking some independent confirmation the acts occurred on the stated date (while being careful not to appear to be questioning a client’s honesty).
If such confirmation is unavailable, the attorney must exercise sound discretion based on his or her knowledge and past experiences with the client.
The challenge for the business lawyer is determining when backdating is legitimate and when it is not.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. 16, 2009 – In recent years, the business media have frequently reported on companies who “backdated” executives’ stock option grants to dates when the stock price was low.Typically, this ensured the options were already “in the money” when the company granted them to employees.