Law Journal Newsletters

An ALM Website

BUSINESS CRIMES BULLETIN

December 2006

Stock Option Backdating

Where Were the Lawyers and Auditors?

By Michael E. Clark

Just as the business community began making headway with Congress to reduce Sarbanes-Oxley (SOX) obligations, a new type of corporate wrongdoing has been revealed backdated stock options used by the executives at many companies and some directors to convert their options at the most opportune times and at the expense of other shareholders and investors. What is troubling is how the boards of directors at so many companies could have approved the backdating or not known about it after SOX and the recent wave of high-profile corporate fraud investigations and prosecutions.

Log In

Subscribers: Log in below to read the full story

Already subscribe but haven't registered for all the benefits of the website?

Subscribe

Click below to subscribe to
BUSINESS CRIMES BULLETIN

Subscribe

Pay-Per-View

You can purchase this article for $20.00
Click below

Purchase Article

ARTICLES FROM RELATED NEWSLETTERS

COMMERCIAL LEASING LAW & STRATEGY

When Affirmative Defenses Fail, Guarantors May Prevail On the Question of Lease Enforceability

Third--party guaranties and commercial leases are distinct legal instruments. Although the two are often executed simultaneously, and it is not unusual for a single person to sign a lease in her corporate capacity and a guaranty for that same lease in her personal capacity, each document creates its own set of obligations as between a different set of contracting parties.