Calgary Alberta - Canadian Pacific Railway Ltd. lifted the veil on Chairman Gary Colter's resignation, saying he stepped down after he and another director triggered an errant news release on the departure of another board member.
 
The exits of Colter and Director Krystyna Hoeg, who led the nominating and governance committee, were both announced early Tuesday.
 
Hours later, Canadian Pacific put out a statement "in response to questions from investors and to address inaccurate speculation."
 
Director Stephen Tobias told Colter on 3 Jul 2015 that he was ready to leave at a date set by the board, Canadian Pacific said.
 
Colter and Hoeg then spurred an announcement that Tobias had left as of 29 Jun 2015, but without consulting the board or seeking action on Tobias's resignation, the railroad said Tuesday.
 
That error has been corrected, the carrier said.
 
"Mr. Colter and Ms. Hoeg offered to resign in light of how this issue was handled," Calgary-based Canadian Pacific said.
 
"The board unanimously accepted their resignations."
 
Because Tobias was a continuing director through 30 Jun 2015 and with a majority of the board being U.S. citizens, Canadian Pacific is no longer eligible for the so-called foreign private issuer exemption from the U.S.
 
Securities and Exchange Commission, Canadian Pacific said.
 
That means the railroad will have to start issuing SEC filings as U.S. companies do.
 
Andrew Reardon, former chief executive officer of railcar provider TTX Co., was named chairman Tuesday to replace Colter.
 
Calls placed to office listings in Houston and Toronto for Colter's consulting firm were unsuccessful.
 
Canadian Pacific, the country's second-biggest carrier, also used the statement to expand on the absence of CEO Hunter Harrison, 70, from Tuesday's second-quarter conference call after what was described as leg surgery.
 
"Mr. Harrison recently had stents implanted in order to improve circulation and reduce cramping in his legs," Canadian Pacific said.
 
"In addition, Mr. Harrison is recovering from a mild bout of pneumonia which has restricted his travel. His full recovery is expected in the coming weeks. He remains actively engaged in the company's business, but elected not to travel to Calgary to participate in this morning's earnings call."

Edward Dufner.

       

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