Manchester v. The Queen, 2005 DTC 1429, 2005 TCC 402 -- summary under Section 67

Directors' fees that were paid to children of the taxpayer's shareholders for serving as directors of the corporation, with the amount paid to them being related to their personal expenses and being unrelated to any level of services provided by them to the corporation (which mostly were minimal) were deductible only to the extent of $1,500 per year per director, with the exception of one of the directors who was capable of making a more significant contribution to the taxpayer's business.