Following the death of the father, his preferred shares of a CCPC (“Opco”), that held only cash as a result of having sold all its marketable securities, were distributed by his estate to his three beneficiaries (his three children), and then Opco was divided equally between the three holding companies (Holdcos A, B and C) for the three children’s families, each holding 1/3 of the Opco common shares.
Rulings included that on the winding-up, Holdcos A, B and C will be deemed to have received dividends pursuant to ss. 88(2)(b) and 84(2) equaling the excess of the amount distributed on their Class A, B or C shares of Opco over those shares’ PUC.