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Therefore, if in doubt it is best to say “no” or to take external legal advice if appropriate.Option backdating scandals: how management accountants can help: backdating of employee stock options can have a significant negative effect on a public company.
For example, if one wishes to backdate a document for the purposes of recording an earlier oral agreement, it should nevertheless still be drafted in such a way so as to avoid giving the incorrect impression that it was actually signed on the date stated.
So as can be seen, the issue of backdating can be a contentious one.
It is not straight forward and can give problems to any lawyer that agrees to backdate a document, even if he makes it clear on the document that it is backdated, as he must be careful to make sure that he knows why the document is being backdated and that it is being done for a legitimate reason.
What confirmation of the earlier agreement did the client or the company for which the client (and lawyer) works provide?
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.
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