CRA indicates that capital dividend elections must be made in any applicable elected functional currency

CRA is of the view that making a functional currency election does not preclude the electing Canadian corporation from using Canadian dollars (or some other currency which is not the elected functional currency) in its "shareholders'" resolutions (including, presumably, directors' resolutions).  However, capital dividend elections (as well as the capital dividend account itself) must be maintained in the functional currency.

Neal Armstrong.  Summary of 20 September 2012 Memorandum 2012-0453071I7  under s. 261(5)(a).