Originally published August 2, 2005
Staff at the Ontario Securities Commission recently issued a news release regarding a warning letter sent to CP Ships Limited. The warning letter was a result of an investigation into the following circumstances: (i) the disclosure that certain financial statements of CP Ships would have to be restated; and (ii) trading by insiders in the shares of CP Ships during the period May 19 to June 4, 2004.
In June 2004 management of CP Ships recognized that financial statements for the years ending December 31, 2002 and 2003 and the financial results for the first quarter of 2004 would need to be restated, but could not at that time determine the extent of that restatement. The announcement that CP Ships would have to restate its financial statements was made on August 9, 2004 when the quantum of the restatement was determined. OSC Staff found that the determination by management in June 2004 that the financial statements needed to be restated constituted
