About Loeb Smith
People
Sectors
Expertise
- Legal Service
- Banking and Finance
- Blockchain, Fintech and Cryptocurrency
- Capital Markets and Privatization
- Corporate
- Cybersecurity and Data Privacy
- Insolvency, Restructuring and Corporate Recovery
- Insurance and Reinsurance
- Intellectual Property
- Investment Funds
- Litigation and Dispute Resolution
- Mergers and Acquisitions
- Private Client and Family Office
- Private Equity and Venture Capital
- Governance, Regulatory and Compliance
- Entity Formation and Managed Services
- Consulting
- Legal Service
News and Announcements
Locations
Subscribe Newsletters
Contact
Backdating
01 January 2021 . 8 min readThe risk of back-dating Cayman Islands law governed documents
If the parties to an agreement governed by Cayman Islands law would like the agreement to take effect from a date earlier than the date upon which the agreement was signed and entered into, the parties should expressly state in the document that it is intended to be effective from a date earlier than the date on which the parties entered into the agreement. It should be made clear in the document that notwithstanding it being entered into on the date of execution by the parties, it is to take effect from a date in the past.
Stating that the contract or agreement will be effective from an earlier “effective date” will, however, only be effective as between or among the parties to the contract or agreement. It will not affect those parties’ obligations under the terms of the contract or agreement with regard to third parties who are not parties to the agreement. The obligations to third parties will almost invariably be based on the date that the contract or agreement was fully executed subject to any applicable special circumstances.
It is worth noting that whilst parties signing a contract or agreement may expressly state that the contract or agreement is effective from a date in the past, the parties should not “back-date” the date of execution (for example, sign the contract or agreement today and but insert an earlier date as the date of the document, thereby making it seem as if it was signed on some earlier date). This could run the risk of civil and/or criminal sanctions in a number of jurisdictions (for example, depending on, among other things, the nature and subject matter of the contract or agreement, false accounting or false statements by directors, or even conspiracy to defraud).
Latest Updates and Insights
INSIGHTS | 28 August 2025
What are the key laws and rules that govern Cayman Islands’ investment funds?
The Mutual Funds Act (for open-ended funds) and the Private Funds Act (for closed-ended funds) are the two main statutes relevant to the regulation of investment funds in the Cayman Islands. The Cayman Islands Monetary Authority (“CIMA”) is the regulatory body responsible for compliance with these laws and...
INSIGHTS | 27 August 2025
Beneficial Ownership requirements in the British Virgin Islands: Registration and “legitimate interest” access
The registration of beneficial ownership information in respect of British Virgin Islands (the “BVI”) companies and the potential for that information to be disclosed subsequently has long been the subject of speculation and understandable concern by owners of companies and other relevant entities in the BVI.
INSIGHTS | 20 August 2025
An overview of remedies in British Virgin Islands crypto asset disputes
The rapid development of the digital assets space and Web 3.0 ecosystem over the last 10 years has meant that courts around the world have been faced with an ever-increasing number of disputes in this space. This includes the courts in the British Virgin Islands (“BVI”). The cases...
INSIGHTS | 28 July 2025
STAR Trusts and Foundation Companies – Developing uses in the Digital Asset space
By way of an update on our recent publication (which can be found here) that the Financial Action Task Force (FATF) had determined that the Cayman Islands has substantively fulfilled its action plan, and following completion of a recent on-site visit by the FATF, the Cayman Islands has...