The act of options backdating has become much more difficult as companies are now required to report the granting of options to the SEC within two business days.This adjustment to the filing window came in with the Sarbanes-Oxley legislation.Does he need to check to see whether that was actually the case or can he take an ostrich-like position and put his head in the sand and not ask any questions?
The argument is obviously not valid if the transaction is one which is required by law to be in writing such as a transfer of land.
This is not an agreement that could have been made orally.
This is a fraud on the tax authorities, a criminal offence and is likely to get the lawyer who prepared the document disciplined by his regulator and possibly also charged as a co-conspirator.
For obvious reasons, any request to backdate a document for these reasons should be flatly turned down.
The company would then grant the option but date it at or near its lowest point.
This is the granted option that would be reported to the SEC.When it is presented and accepted are the meaningful things. Playing without a stick is also allowed in Box Lacrosse but not in field lacrosse.\n.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.In this way, the exercise price of the granted option can be set at a lower price than that of the company's stock at the granting date.