SEC reporting implications
i) Potentially inaccurate reporting of executive compensation in proxy statements and annual reports
ii) Potential violation of securities and Law for executive officers and directors with Section 16 (a) of the Securities and exchange Act of 1934. Required to report on form 4
iii) Potential false or misleading disclosures about the company's stock option plan in periodic reports filed with the SEC - Failure to disclose the practice of backdating may violate securities and laws against false or misleading disclosures
iv) Potential false Section 302 certifications - Principal and financial executives are needed to sign certifications in annual and quarterly reports certifying that among other things that report filed with the SEC doesn't include any false statements of amaterial fact or state material facts essential in order to make the disclosures not misleading.