An amalgamation of two credit unions that did not qualify as an amalgamation under s. 87(1) nonetheless resulted in the amalgamated corporation having its undepreciated capital cost reduced by depreciation claims made by its predecessors, given that at corporate law the amalgamation was a continuation of the predecessors.
The Court of Appeal found that the amalgamation did fall under s. 87(1), but affirmed in the alternative that the amalgamation was a continuation of its predecessors. The Supreme Court affirmed that s. 87(1) applied (with different reasons), and therefore it was unnecessary to determine the consequences if it did not.