Principal Issues: In a situation where the capital stock of a corporation is made up of a number of classes of participating common shares, each class being entitled to dividends at the directors' discretion, how would the safe income on hand be allocated amongst the various classes of shares in a situation where a particular class has preferential rights to a certain portion of the profits?
Position: It depends on the facts and circumstances surrounding the situation. The terms of the issued and outstanding shares and of any relevant provisions of any unanimous shareholders agreement would be part of the relevant facts reviewed to reach a conclusion.
Reasons: Previous position.
