Effect of backdating
Documenting what happened in the past What you can do is document a transaction which has actually happened in the past which had not been formalised.For example, one group company may have lent money to another group company without documenting the arrangements in a written loan agreement.
For example, a transfer of land may need to be documented in writing and registered in order to be effective.If you are a member, please login to read the full article.If you are not a member, you can find out more about joining STEP here.Is it a civil contract whose parties are allowed to agree (even retroactively) than an NDA is in place?Or could doing so (backdating such a document) be considered fraud, forgery, or anything illegal, or even for some reason ethically or morally wrong?This type of situation needs to be considered on a case-by-case basis to make sure that the approach of ratification / formalisation actually works.
Backdating the economic effect of a transaction which hasn’t happened yet In other cases it may be clear that the transaction has not happened yet.
to January 2010, according to an agreement concluded between the top management of the National Railway Company (SNTF) and the National Railwaymen Union (FNC), said Tuesday in Algiers Noureddine Dekhli, the company's Human Resources Supervisor.
Sometimes a group of companies which has reorganised itself will want to backdate some of those changes, perhaps to backdate an intra-group transfer of business so that it coincides with the previous year end.
In this kind of situation, the following general approach should be considered: – the relevant arrangements can be documented in the appropriate form, such as a loan agreement or business transfer agreement.
It is helpful if the recitals to the agreements describe the history of what actually happened, when it happened and what evidence of this exists. when actually signed), but can refer to the historic transaction date.
Generally you can back-date the effective date of a contract.