With reference to the situation where a corporation governed by the CBCA declares and pays a stock dividend on its common shares by issuing 100 preferred shares with a redemption price of $100,000 and the amount added by the directors to the stated capital of the preferred shares is $1, CCRA noted that:
"Many authors are of the view that under the CBCA, it is possible to pay stocks dividends as described above and add a nominal amount to the stated capital of shares ... . In general, the CCRA does not challenge the legal validity of the stated capital of shares of a corporation incorporated under the CBCA, where a nominal amount has been added to the stated capital of the shares issued by the corporation, as in the situation above. Consequently ... the amount of the dividend ... would generally be considered to be $1 ... ."