Backdating documents legal

Every lawyer should be capable of distinguishing legitimate backdating from improper backdating.

Mossack Fonseca is one of the world’s leading providers of shell companies, the corporate structures that can be used to hide ownership of assets by designating “a natural person nominee” or straw man, who pretends on paper to own assets the actual owners want to hide.That’s because of the stock option backdating scandals and based on rules and standards that consider backdated documents less reliable supporting evidence for financial statement numbers or evidence for an audit.External auditors have been sanctioned and barred from the profession for backdating audit workpapers to deceive regulators into believing audit work was performed before the client’s annual report was published.Parties may be tempted to ‘back date’ the documents to when their plans were devised or agreed.However doing so is at very least misleading and deceptive conduct (because the date of a document means the date that it is signed), and at worst may constitute criminal fraud.

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