Backdating planning who has ed helms dating
There are some cases where this approach is not possible.For example, a reduction of share capital using the UK solvency statement procedure only takes effect in law when it is actually registered with Companies House.These two general areas mean that some legal due diligence should be carried out to identify and address areas for corrective action.Documenting a transaction which has not yet happened In other cases, it may not be possible to say that the relevant transaction has already taken place – but you may still want to achieve a ‘backdated’ effect.This type of arrangement would not bind third parties, but it may be effective from an accounting and tax perspective depending on the length of time which has elapsed since the intended historic effective date.
As from that date, customers may have been invoiced by the transferee, employees may have been paid by the transferee, and accounting entries may have been made to reflect the purchase price payable for the assets.
Conclusion It can be very tempting just to ‘backdate’ documents, with the intention of making life easier. With a bit of thought and investigation, is it often possible to achieve a result which gets close to the desired result and also lets you sleep at night.
Options backdating is the practice of altering the date a stock option was granted, to a usually earlier (but sometimes later) date at which the underlying stock price was lower.
So any attempt to rely on the reduction before registration would be ineffective.
You will also need to consider two other things from a legal perspective.
Together, these factors may indicate that the beneficial interest in the relevant assets has passed from a legal point of view.