Backdating an email
Setting aside such issues, avoiding unwanted side effects of backdating contracts can be tricky, especially when the purported effective date of an agreement is several months before the date it was actually signed, as can be seen in involves the ownership of a promissory note that was made to a bank in connection with a loan.The facts are a bit complicated, involving circumstances surrounding the failure of a bank and transactions in the bank’s loans preceding the failure as well as transactions of the FDIC as the bank’s receiver.
The backdating concern occurs when the company does not disclose the facts behind the dating of the option.
For those with an hour to kill thinking about the issues, Jeffrey Kwall and Stuart Duhl wrote an excellent article on backdating that was published in Business Lawyer in 2008.
For a shorter piece with a few practical tips see Backdating – it’s illegal isn’t it?
Do you ever wish that you could turn back the hands of time?
Some executives have, well, at least when it comes to their stock options.