The legislative history of the definition of term preferred share in s. 248(1) indicated that the provision applied to a specific and sophisticated segment of taxpayers, with the result that it was appropriate that the phrase "guarantee, security or similar indemnity or covenant" be interpreted in accordance with its more technical meaning derived from the laws that applied to commerce in general and public business companies in particular, rather than its ordinary dictionary meaning.
Malone J.A. also stated (at p. 6881):
"... as indicated in Bon-Secours, once ambiguity becomes an issue, the legislative provision should be given a strict or liberal interpretation depending on the purpose underlying the provision. That purpose must be identified in light of the context of the statute, its objective and the apparent legislative intent. Hence it is necessary to canvas the purpose and intent underlying the definition of 'term preferred share'."