CP Ships Limited reported that its Special Committee comprised of four independent directors
and chaired by Peter Dey has completed the previously announced investigation into stock trading activities in May and June of this year (2004) by certain officers of the company. The Special Committee
investigation addresses, among other things, issues raised in an August 2004 letter from the Ontario Securities Commission concerning these stock trading activities.
The Special Committee found that trading in shares of the Company by certain officers in that period should not have taken place. The Special Committee concluded that there was no intent to violate
applicable securities laws. It also noted that the trading was done openly and with required internal trading approvals. The Special Committee has requested that the individuals involved, including Chairman Ray Miles, make appropriate restitution to the Company in respect of such trading activity. The Company will continue to co?operate fully with securities regulatory authorities.
The Board of CP Ships considered all relevant factors, including the findings of the Special Committee, in conferring executive responsibility on Mr. Miles on December 1, 2004 following the resignation of Frank Halliwell as chief executive officer. The Company confirms that Mr. Halliwell did not engage in any trading activity in the relevant period.