21.5.5. The consideration for which a share may be converted or exchanged and to which paragraph c of section 21.5 refers shall only include
(a) another share of the issuing corporation or a corporation related to it that, if issued, would not be a term preferred share,
(b) a right or warrant that, if exercised, would allow the person exercising it to acquire only a share of the issuing corporation or a corporation related to it that, if issued, would not be a term preferred share, or
(c) both a share described in subparagraph a and a right or warrant described in subparagraph b.
For the purposes of the first paragraph, where a taxpayer may become entitled, upon the conversion or exchange of a share, to receive any particular consideration, other than consideration described in the first paragraph, in lieu of a fraction of a share, the particular consideration is deemed not to be consideration unless it may reasonably be considered that the particular consideration was receivable as part of a series of transactions or events one of the main purposes of which was to avoid or limit the application of section 21.10, 21.10.1 or 740.1.
1990, c. 59, s. 14; 1997, c. 3, s. 71.