CRA finds that the appointment of a replacement trustee qualifies as an acquisition of trust shares under s. 256(7)(a)(i)(A)

CRA has ruled that where the three unrelated individual trustees of a trust resign in succession with three corporations wholly-owned by them appointed as replacement trustee, there will be no acquisition of control of a corporation controlled by the trust (Opco).  The narrow technical point appears to be that the concurrent resignations and appointments qualify as an "acquisition" of the shares of Opco by the new trustee corporations for purposes of s. 256(7)(a)(i)(A) - and that, if the resignations and appointments were not sequenced in this seriatim manner, it might be considered that control of Opco has been acquired by an unrelated group.

Neal Armstrong.  Summary of 2011 Ruling 2010-0360921R3 under s. 256(7)(a).