Gagnon v. The Queen, 2008 DTC 3111, 2006 TCC 194 -- summary under Subsection 84(3)

The taxpayer originally signed an agreement for the sale of his half interest in a business (which was found to be held in a corporation) to his brother. After receiving payment of the purchase price from the corporation, his brother purported to have the corporation retroactively issue two shares to the taxpayer and got the taxpayer to sign a second agreement providing for the purchase of those two shares by the corporation from the taxpayer in consideration for the two payments that the corporation had in fact made to him. In finding that the taxpayer had received deemed dividends, Lamarre J. stated (at para. 22) that "a person can be declared a shareholder retroactively" and found that the second agreement was the one that prevailed as it reflected the contractual reality negotiated by the two brothers.