Research in motion stock option backdating


25-Aug-2019 00:02

research in motion stock option backdating-72

Freesextextchating

If the options are not exercisable for a period of years, the executive may or may not make a profit depending on what happens to the stock price.

If the price goes down below the price at which the options were issued there will not be any profit.

It is common for two parties, particularly in the commercial context, to enter into a contract at one time, but agree to have the contract come into effect at an earlier time. Courts respect the parties' decision to backdate since giving effect to backdating provisions respects the parties' intentions as well as their freedom of contract., 1968 (the date the contract was delivered to the insured).

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.

For example, in a company's employees were interested in unionizing.

In addition to misleading a third party, backdating may also be impermissible where it contravenes applicable rules or legislation.

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.