81 C.R. - Q.3

On the conversion of debt of an insolvent corporation into share capital, RC will not apply both ss.69(1)(a) and 80.

When a shareholder advance is paid off with the proceeds of a day-light loan and the proceeds are then used by the shareholder to subscribe for shares, RC will not invoke the application of s. 69(1)(a) to the shares issued, if the corporation agrees to the application of s. 80, and vice versa.