Income Tax Regulations — 6202.1
ght or any person or partnership to acquire an interest in a partnership acquiring the new right (otherwise than because of an excluded obligation in relation to the new right), (i) provided assistance, (ii) made or arranged for a loan or payment, (iii) transferred property, or (iv) otherwise conferred a benefit by any means whatever, including the payment of a dividend; or (c) the holder of the new right or, where the holder is a partnership, a member of the partnership, has a right under any agreement or arrangement entered into under circumstances where it is reasonable to consider that the agreement or arrangement was contemplated at or before the time the agreement to issue the new right was entered into, (i) to dispose of the new right, and (ii) through a transaction or event or a series of transactions or events contemplated by the agreement or arrangement, to acquire (A) a share (referred to in this paragraph as the “acquired share”) of the capital stock of another corporation that would be a prescribed share under subsection (1) if the acquired share were issued at the time the new right was issued, other than a share that would not be a prescribed share if subsection (1) were read without reference to subparagraphs (1)(a)(iv) and (1)(d)(i) and (ii) where the acquired share is a share (I) of a mutual fund corporation, or (II) of a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired share, or (B) a right (referred to in this paragraph as the “acquired right”) to acquire a share of the capital stock of another corporation that would, if it were issued at the time the new right was issued, be a prescribed right, other than a right that would not be a prescribed right if subsection (1.1) were read without reference to subparagraph (1.1)(e)(i) where the acquired right is a right to acquire a share of the capital stock (I) of a mutual fund corporation, or (II) of a corporation that becomes a mutual fund corporation within 90 days after the acquisition of the acquired right. (3) For the purposes of subsections (1) and (1.1), (a) the dividend entitlement of a share of the capital stock of a corporation is deemed not to be fixed, limited to a maximum or established to be not less than a minimum where all dividends on the share are determined solely by reference to a multiple or fraction of the dividend entitlement of another share of the capital stock of the corporation, or of another corporation that controls the corporation, where the dividend entitlement of that other share is not described in subparagraph (1)(a)(i); and (b) the liquidation entitlement of a share of the capital stock of a corporation, or of a right to acquire a share of the capital stock of the corporation, as the case may be, is deemed not to be fixed, limited to a maximum or established to be not less than a minimum where (i) all the liquidation entitlement is determinable solely by reference to (A) the liquidation entitlement of another share of the capital stock of the corporation (or a share of the capital stock of another corporation that controls the corporation), or (B) the liquidation entitlement of a right to acquire the capital stock of the corporation (or another corporation that controls the corporation), (ii) the liquidation entitlement described in clause (i)(A), if any, is not described in subparagraph (1)(a)(ii), and (iii) the liquidation entitlement described in clause (i)(B), if any, is not described in paragraph (1.1)(a). (4) For the purposes of paragraphs (1)(c) and (e) and (1.1)(d) and (f), an agreement entered into between the first holder of a share or right and another person or partnership for the sale of the share or right to that other person or partnership for its fair market value at the time the share or right is acquired by the other person or partnership (determined without regard to the agreement) is deemed not to be an undertaking with respect to the share or right, as th