2002 WAS A YEAR IN WHICH CORPORATE GOVERNANCE ROSE TO NEW PROMINENCE IN THE EYES OF INVESTORS.
We are pleased to see governance recognized as a significant factor in determining a company’s success. However, we are disappointed that the actions of a highly visible few have resulted in widespread distrust of our corporate leaders and a belief that ethics and integrity must be enforced.
TransCanada takes this issue very seriously. We are proud to have been recognized for our leadership in corporate governance. The Board and management have long been committed to achieving the highest standards of business ethics and governance, consistently meeting, and exceeding, the Toronto Stock Exchange’s Guidelines for Corporate Governance. Further, TransCanada already meets most of the new requirements of the Sarbanes-Oxley Act and the proposed stock exchange guidelines.
At TransCanada, we are genuinely motivated by the desire to do the right thing in the interests of our shareholders. We are gratified that our commitment to sound ethical practices contributes directly to enhancing TransCanada’s reputation, and ultimately, its value to shareholders. By setting a high standard of honesty, fairness and integrity, TransCanada, along with its peers, hopes to restore respect for the business community.
The management and employees of TransCanada are deserving of our recognition for their commitment to living TransCanada’s values and for their work in delivering strong financial and operating performance. In January 2003, on the strength and sustainability of TransCanada’s earnings in 2002, the Board was able to raise the dividend for the third consecutive year. We applaud your efforts and thank you for your continued commitment to TransCanada.
I thank my fellow Directors for their hard work and ongoing dedication to TransCanada. Ron Coleman will be retiring from the Board at our shareholder meeting in 2003. He has served with distinction for many years on the boards of NOVA Corporation and TransCanada and we thank him for his valuable contribution. We also welcome Barry Jackson, Chairman of Resolute Energy Inc. and Deer Creek Energy Limited, and a Director of Nexen Inc., who was appointed to the Board in December 2002.
On behalf of the Board of Directors,