Legality of backdating

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And according to section 9(1)(g), an instrument can be considered false if the document claims to have been created or modified on a date on which it was not actually created or modified.With this in mind, misdating or backdating a contract could be considered a serious legal offense.It is common for there to be days or weeks between agreeing to commercial terms and the official contract execution date.Even in the case of something as simple as a Confidentiality Agreement, the involved parties may have legitimate intentions for the document to be effective before it was actually created.Decisions regarding the date that should be put on a document are likely to be something that has to be done on a regular basis in a practical business setting.

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In other words, the occasions in which it is appropriate to use backdated documents are rare.This practice contravened both the TSX Rules as well as RIM's stock option plan that required options "to be granted at an exercise price not less than the closing price of RIM's common shares on the TSX on the last trading day preceding the date on which the Options are approved for grant".In summary, backdating is generally permissible where it is done to alter the obligations of the contracting parties only.One common approach is to date the document only once all involved parties have signed it and to use a date that goes back no further than the date of the most recent signature.This will normally cover most cases that come across a corporate attorney's desk.

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