Governance

Teekay LNG Partners is committed to good corporate governance as a key to maintaining the trust of its investors, and although Teekay LNG Partners is a foreign private issuer, the Partnership has voluntarily chosen to comply in all material respects with the New York Stock Exchange (NYSE) domestic corporate governance listing standards.

Vessel Acquisitions from Teekay Corporation

Pursuant to the Omnibus Agreement between Teekay LNG and Teekay Corporation, Teekay Corporation is obligated to offer Teekay LNG any suitable assets to Teekay LNG at fair market value.

Once Teekay Corporation offers the vessels, Teekay LNG’s Conflicts Committee, comprised of the independent members of the Board of Directors, reviews the offer and typically seeks a fairness opinion from a third-party valuator. Vessel acquisitions are generally accepted only if they are accretive and therefore increase the cash available for distribution to unitholders on a per unit basis.

Upon completion of the purchase of an asset by Teekay LNG by Teekay Corporation, Teekay Corporation will typically continue to manage the vessel.

Business Conduct Reporting

Anyone with a concern about questionable accounting, financial auditing, internal control or financial fraud related matters may file a report through the Business Conduct Reporting Tool or the toll-free hotline (in Canada and the U.S.):

+1 877 507 8685

Reports may be submitted confidentially and, if desired, anonymously. All complaints will be received and processed through EthicsPoint by Navex Global, an independent organization located in the United States that provides web reporting services to companies around the world. Our Board of Director’s Audit Committee has oversight of the web reporting tool.