Minister of National Revenue v. Sheldon's Engineering Ltd., 55 DTC 1110, [1955] CTC 174, [1955] SCR 637 -- summary under Paragraph 251(1)(c)

When the minority shareholders of a company (the "Old Company") learned that the majority shareholders were going to sell their shares of the Old Company, they arranged a bank loan and at a time that 80% of the outstanding shares of the Old Company were pledged with the bank as security for the loan, a new company (the "New Company") that had been formed by the minority shareholders acquired the assets of the Old Company. This was an arm's length transaction. It was the bank, not the minority shareholders, who were in control of the Old Company at the relevant time.