408. Exemption of distributions received by companies that are not small.

A dividend or other distribution1 of a company2 that is received in an accounting period3 of the recipient4 in which the recipient is not a small company5 is exempt if:

  1.  

    (1)     the distribution falls into an exempt class6,

  2.  

    (2)     the distribution is not of a specified kind7 in respect of non-commercial or special securities; and