,canada ,cu/om                        #a
& ,rev5ue ,ag5cy

          ,9t]pret,n ,bullet9
    
,subject3 ,9come ,tax ,act
  ,%>es ,5titl+ ,%>ehold]s 6,*oose
  ,taxa# or ,capital ,divid5ds
,numb]3 ,,it-#adf;,r#d
,date3 ,septemb] #f1 #aiia
,ref];e3 ,p>agraph #ed7c7 7al sec;ns
  #ea1 #hc & #hf1 subsec;n #hd7#c7 &
  p>agraph #hi7#a77j77

               ,applic,n
    
  ,? bullet9 replaces & c.els ,9t]pret,n
,bullet9 ,,it-#adf;,r#c dat$ ,augu/ #be1
#aihj4 ,curr5t revi.ns >e designat$
0v]tical l9es4

                ,summ>y
    
  ,? bullet9 4cusses ! circum/.es ": a
4posi;n ( %>es is n 3sid]$ 6o3ur1     #a
             ,,it-#adc;,r#c          a#a
)9 ! m1n+ ( p>agraph #ed7c71 :5 "! has
be5 a reclassific,n or a design,n (!
%>es (a corpor,n1 9 ord] 6provide a
%>ehold] )a *oice ( rcvg ei taxa# or
capital divid5ds4

          ,4cus.n & ,9t]pret,n
    
     ,design,n or ,reclassific,n (
              ,-mon ,%>es
    
#a4 ,c]ta9 %>ehold]s (a class ( %>es (a
  corpor,n's /ock may pref] 6rcv capital
  divid5ds1 ":as o!r %>ehold]s (! same
  class may pref] taxa# divid5ds4 ,"s
  corpor,ns h met %>ehold]'s divid5d
  pref];e z foll[s3
  7a7 ! issu$ -mon %>es (a class >e
    designat$ or reclassifi$ z a special
    class ( %>es1 = example1 z ,class
    ;,a %>es1 : 5title ! hold] 6rcv only
    taxa# divid5ds1
  7b7 a "r is atta*$ 6! ,class ;,a %>es
    5titl+ ! hold] 6ex*ange !m =      #b
             ,,it-#adc;,r#c          b#a
    %>es (a newly cr1t$ class1 =
    example1 ,class ;,b %>es1 : h ! same
    9t]e/s1 "rs & privileges z ! ,class
    ;,a %>es except t ! hold] is 5titl$
    6rcv1 at ! 4cre;n (! directors1 ei
    taxa# divid5ds or capital divid5ds1
    &
  7c7 a "r is al atta*$ 6! ,class ;,b
    %>es 5titl+ ! hold] 6ex*ange !m back
    = ,class ;,a %>es4
--------------------------------------#b
#b4 ,! design,n or reclassific,n (a
  class ( %>es &! atta*;t (a "r (
  ex*ange "!to 9 circum/.es simil> 6^?
  describ$ 9 #a7a7 & #a7b7 abv does n
  3/itute a 4posi;n (! %>es )9 ! m1n+ (
  p>agraph #ed7c7 (! ,act4 ,! newly
  designat$ %>es 7,class ;,a abv7 >e
  3sid]$1 = all purposes (! ,act1 6be !
  same prop]ty z ! orig9al -mon %>es &
  6h be5 acquir$ at ! same "t &=! same
  co/ z ! orig9al -mon %>es4 ,fur!rmore1
  ! provi.ns ( subsec;n #hd7#c7
  7redemp;n or c.ell,n ( %>es7 &      #c
             ,,it-#adc;,r#c          a#b
  sec;n #hf 74posi;n ( %>es 9 ! c\rse (a
  reorganiz,n ( capital7 d n apply4

      ,3v].n ( ,%>es f ,class ;,a
              6,class ;,b
    
#c4 ,":1 9 circum/.es describ$ 9 #a abv1
  ! "r ( 3v].n is ex]cis$ & ,class ;,a
  %>es >e ex*ang$ = ,class ;,b %>es1
  sec;n #ea applies 6deem ! ex*ange n
  6be a 4posi;n &! co/ (! ,class ;,b
  %>es acquir$ 6be ! adju/$ co/ base (!
  ,class ;,a %>es4 ,! =ego+ applies only
  ": ! ex*ang$ %>es >e capital prop]ty
  (! %>ehold]4

      ,g5]al ,rules = ,*anges 9 !
          ,t]ms ( ,securities
    
#d4 ,,it-#ddh 5titl$1 ,4posi;ns--,*anges
  9 ! ,t]ms ( ,securities &! ,special
  ,rel1se "!to 4cuss ! factors t >e
  3sid]$ 9 det]m9+ :e!r or n a 4posi;n
  pursuant 6p>agraph #ed7c7 has       #d
             ,,it-#adc;,r#c          b#b
  tak5 place :5 ! t]ms (a secur;y h be5
  alt]$4 ,x is 3sid]$ t ! specific
  circum/.es \tl9$ 9 #a abv d n result 9
  a 4posi;n4 ,h["e1 9 o!r circum/.es a
  *ange 9 ! "rs atta*+ 6a class ( %>es
  may 3/itute a 4posi;n &! "picul>
  circum/.es ( ea* case w h 6be review$
  6make ? det]m9,n4

           ,reconv].n ( ,%>es
    
#e4 ,corpor,ns : h reclassifi$ _! -mon
  %>es 6,class ;,a & cr1t$ ,class ;,b
  %>es1 9 circum/.es z \tl9$ 9 #a abv1
  may wi% 64cont9ue ! two classes ( %>es
  & reconv]t ^! %>es to 8new0 -mon %>es4
  ,": a reconv].n ( %>es has be5 c>ri$ \
  0corpor,ns 9 ! foll[+ mann]3
  7a7 class ;,a & class ;,b %>es >e
    reclassifi$ to 8new0 -mon %>es1 &
  7b7 ! 8new0 -mon %>es h ! same 9t]e/s1
    "rs & privileges z !
  
                                      #e
             ,,it-#adc;,r#c           #c
    class ;,a & class ;,b %>es1 except
    =! 3v].n "rs (! class ;,a & class
    ;,b %>es &! divid5d "rs (! class ;,b
    %>es1 ! reconv].n w n 3/itute a
    4posi;n (! %>es )9 ! m1n+ ( p>agraph
    #ed7c74
  
         ,tax ,avoid.e ,3sid],n
    
#f4 ,": "o (! ma9 purposes ( an
  acquisi;n ( %>es is 6acquire a "r 6a
  capital divid5d1 ! capital divid5d if
  pd af #d3jj p4m4 ,ea/]n ,"dli<t ,sav+
  ,"t1 ,septemb] #be1 #aihg1 w 2 tr1t$ z
  a taxa# divid5d rcvd 0! %>ehold]
  0virtue ( subsec;n #hc7#b.a74
  ,subsec;ns #hc7#b.b7 6#hc7#b.d7
  provide excep;ns ": ! anti-avoid.e
  rule 9 subsec;n #hc7#b.a7 w n apply4
  ,) respect 6! situ,n describ$ 9
  p>agraph #a ( ? bullet91 x is ! ma9
  purpose (! acquisi;n (! orig9al %>es :
  w det]m9e :e!r ! anti-avoid.e rule w
  apply4 ,a reclassific,n or          #f
             ,,it-#adc;,r#c          a#c
  design,n simil> 6t describ$ 9 p>agraph
  #a abv w g5],y n br+ subsec;n
  #hc7#b.a7 96applic,n4




















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