Correction and clarification - David Teece and Richard Shapiro

Last Friday's The Business Herald included two articles about Canterbury Limited that made reference to David Teece and to two tax matters that were said to affect Mr Teece personally.

The Business Herald accepts that Mr Teece has not been investigated by the US Internal Revenue Service and no allegations of impropriety have been made against him. Any such meaning was not intended.

The first tax matter referred to involved a US Tax Court decision that arose from Mr Teece's challenge to an IRS proposed adjustment and resulted in the proposed adjustment being reduced by approximately 90 per cent. This matter arose out of a passive investment promoted by a major accounting firm and did not involve any business activities personally directed by Mr Teece. To the extent that the articles may have suggested that Mr Teece was sued by the IRS, this is incorrect.

The second tax issue referred to one of the Canterbury holding companies. The Herald accepts that this issue is solely concerned with which of the many Canterbury companies is entitled to the deduction. The IRS has accepted that the deduction is proper and the dispute is limited to identification of which company is entitled to it.

One of the articles said that Richard Shapiro, who has a shareholding in Canterbury is the former vice-president of regulatory affairs for Enron Corporation. That is incorrect. The Richard Shapiro who is a shareholder in Canterbury does not have any association with Enron. The Business Herald regrets this error.

Mr Teece advises that he did not "decline" to speak to The Business Herald about tax issues and that he was simply unable to make himself available at the time at which The Business Herald sought to make contact with him.