Backdating

(redirected from backdate)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

Backdating

In the context of mutual funds, a feature allowing fundholders to use an earlier date on a letter of intent to invest in a mutual fund in exchange for a reduced sales charge, e.g. Giving retroactive value to purchases from the earlier date. In the context of corporate governance, the illegal practice of setting the date of options awarded as part of executive compensation to a period when the stock price was very low (rather than setting the date of the options on the date the award was made).

Backdating

The act of dating a document before the date it was actually signed. For example, if one signs a contract on February 1, one may backdate it to January 31. Backdating is usually illegal; for example, one may use backdating to evade taxes. However, it can be permissible under certain circumstances. For instance, one may backdate an insurance claim if there was an unavoidable delay between the date the insured event occurred and the day the claim was made.

backdating

The practice of allowing a mutual fund shareholder to use previous purchases of the fund's shares so as to qualify for reduced commission charges on subsequent purchases. Backdating is used when a fund offers declining proportional sales charges on larger purchases.
References in periodicals archive ?
This was the right pay offer but they didn't backdate it," said Mr White.
She said failing to backdate the award would leave each police officer about pounds 200 worse off, but insisted there was a greater principle at stake.
The snag arose when United refused to backdate the payments to December 5 - worth pounds 104,000.
There is growing anger among MPs at the decision not to backdate the pay award.
Between 1996 and 2003, Olesnyckyj conspired with other former senior executives at Monster to systematically backdate stock option grants to Monster employees in an effort to fraudulently suppress Monster's compensation expenses, and falsely inflate its earnings and share price.
22, one day after his new contract was approved, and told a secretary to backdate the document to Dec.
THE Police Federation is seeking a judicial review of the decision not to backdate officers' pay awards, it emerged yesterday.