Income Tax Act — I-3.3 248
n described in any of paragraphs (a) to (e.1) of the definition specified financial institution , (ii) a corporation that is controlled by one or more corporations described in subparagraph (i), (iii) a corporation that acquired the share after December 11, 1979 and is related to a corporation referred to in subparagraph (i) or (ii), or (iv) a partnership or trust of which a corporation referred to in subparagraph (i) or (ii) or a person related thereto is a member or a beneficiary, that (either alone or together with any of such corporations, partnerships or trusts) controls or has an absolute or contingent right to control or to acquire control of the issuing corporation, but does not include a share of the capital stock of a corporation (c) that was issued after November 16, 1978 and before 1980 pursuant to an agreement in writing to do so made before November 17, 1978 (in this definition referred to as an “established agreement”), (d) that was issued as a stock dividend (i) before April 22, 1980 on a share of the capital stock of a public corporation that was not a term preferred share, or (ii) after April 21, 1980 on a share that was, at the time the stock dividend was paid, a share prescribed for the purposes of paragraph (f), (d.1) that is listed on a designated stock exchange in Canada and was issued before April 22, 1980 by (i) a corporation referred to in any of paragraphs (a) to (d) of the definition specified financial institution in this subsection, (ii) a corporation whose principal business is the lending of money or the purchasing of debt obligations or a combination thereof, or (iii) an issuing corporation associated with a corporation described in subparagraph (i) or (ii), (e) for a period not exceeding ten years and, in the case of a share issued after November 12, 1981, for a period not exceeding five years, from the date of its issuance, which share was issued by a corporation resident in Canada, (i) as part of a proposal to, or an arrangement with, its creditors that had been approved by a court under the Bankruptcy and Insolvency Act , (ii) at a time when all or substantially all of its assets were under the control of a receiver, receiver-manager, sequestrator or trustee in bankruptcy, or (iii) at a time when, by reason of financial difficulty, the issuing corporation or another corporation resident in Canada with which it does not deal at arm’s length was in default, or could reasonably be expected to default, on a debt obligation held by a person with whom the issuing corporation or the other corporation was dealing at arm’s length and the share was issued either wholly or in substantial part and either directly or indirectly in exchange or substitution for that obligation or a part thereof, and, in the case of a share issued after November 12, 1981, the proceeds from the issue may reasonably be regarded as having been used by the issuing corporation or a corporation with which it was not dealing at arm’s length in the financing of its business carried on in Canada immediately before the share was issued, (f) that is a prescribed share, or (f.1) that is a taxable preferred share held by a specified financial institution that acquired the share (i) before December 16, 1987, or (ii) before 1989 pursuant to an agreement in writing entered into before December 16, 1987, other than a share deemed by paragraph (c) of the definition short-term preferred share in this subsection or by paragraph (i.2) to have been issued after December 15, 1987 or a share that would be deemed by paragraph (e) of the definition taxable preferred share in this subsection to have been issued after December 15, 1987 if the references therein to “8:00 p.m. Eastern Daylight Saving Time, June 18, 1987” were read as references to “December 15, 1987”, and, for the purposes of this definition, (g) where the terms or conditions of an established agreement were amended after November 16, 1978, the agreement shall be deemed to have been ma