Legal and accounting fees paid by the taxpayer in connection with the preparation of management circulars, which were sent to shareholders in response to three take-over bids, were fully deductible. The circulars were required to be prepared by section 134 of the Securities Act (Quebec), whose purpose was to ensure that all shareholders were given equal access to adequate information in the course of a take-over bid, and "having to look after one's shareholders is part of the periodic administrative duties of a company doing business" (p. 171). In addition, respecting s. 18(1)(b), the expenditures did not give rise to an identifiable enduring benefit. However, in obiter dicta, Archambault T.C.J. indicated (at p. 174) that if, contrary to the facts in this case, the board had been hostile to the take-over bids and had incurred expenses in order to fight the bids and maintain the status quo, s. 18(1)(b) would have applied.