Option backdating why the fuss and how to avoid it

The position is then clear to all who subsequently look at the document.Another way is to state at the beginning of the document that it is made “as of” the required date.However, an explanation often given by the person wanting to backdate the document is that the document is merely meant to reflect an oral agreement that has already been made and that this is just a way of documenting it.In theory, this would appear on the face of it to be a reasonable request, as it is just a private arrangement between two parties.If the document is putting in place something which “should have been done” but hasn’t been, usually for tax or similar reasons, then the position is straightforward.

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For obvious reasons, any request to backdate a document for these reasons should be flatly turned down.Is the client a longstanding one who has always acted properly in the past? These are questions he will probably be asked by the judge or regulator if things go wrong and to which he will need convincing answers.There are some ways in which the lawyer can give himself some protection in agreeing to such a request but they are not foolproof.However, he only realizes this in January and so wishes to backdate the document to December.The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did.

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