Hubbell inc and backdating stock options Flirt by yahoo cam
Backdating contracts is a somewhat common practice.However, backdating a contract should not be done lightly because it easily can be considered a criminal offense that carries quite hefty consequences.For example, in a company's employees were interested in unionizing.The company attempted to impede the unionization by hiring additional employees that were against the union.Take the beloved and equally reviled Martha Stewart.In the 1990s, Stewart was revered for her homemaking skills, her cookbooks and TV shows, and the empire built around the Martha Stewart brand.The practice is illegal if it is not followed by proper disclosure and related expenses are not recorded in financial statements.
But their weightiest charges of securities fraud were thrown out.
The Court considered the construction of the whole policy and held that the exclusion clause took effect on the backdated date chosen by the parties.
Although backdating is generally permissible under the common law, a court will not give effect to backdating where the parties backdated the contract to mislead a third party.
In summary, backdating is generally permissible where it is done to alter the obligations of the contracting parties only.
However, it is impermissible where the parties backdate either to unconscionably interfere with the rights of third parties (including the government's right to tax such parties) or where it contravenes applicable rules or legislation.
Ironically, Martha Stewart's case surfaced in the early days of disclosures about options backdating, when an anonymous lawyer was quoted by Business Week as saying Brocade Communications Systems Inc.