Back dating of stock
In terms of private contracts, backdating isn't normally illegal.
In this scenario, using what is known as an "as of" formula might be appropriate.
For a shorter piece with a few practical tips see Backdating – it’s illegal isn’t it?
Setting aside such issues, avoiding unwanted side effects of backdating contracts can be tricky, especially when the purported effective date of an agreement is several months before the date it was actually signed, as can be seen in involves the ownership of a promissory note that was made to a bank in connection with a loan.
Backdating a contract can have some negative effects.
Potential drawbacks can include: While backdating a contract's effective date might be appropriate in some situations, these issues, among others, should be carefully considered before you backdate any contractual documents.
Many jurisdictions allow for contracts that have an effective date that is earlier than the date that the documents were signed.