30 January 2003 Internal T.I. 2002-0157307 F - Article 86.1 et fractions d'action -- summary under Paragraph 86.1(2)(b)

As part of a reorganization, Aco distributed to its shareholders one share of Bco for each X shares of Aco held by them (the "Reorganization"). Where Aco shareholders thereby were entitled to a fraction of a Bco share, their fraction of a share was aggregated and sold on their behalf by a broker, with their shares of the cash proceeds being paid to them. The Directorate found that this cash sale process did not detract from the distribution of the Bco shares being an eligible distribution.