When used in an ITA 86(1)exchange of shares in a reorganization, preferred shares cannot have voting rights.

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Preferred shares can have voting rights; the Income Tax Act (ITA) does not prohibit preferred shares from having voting rights in the context of an 86(1) exchange of shares in a reorganization. The characteristics of the shares, including voting rights, are determined by the corporation's articles of incorporation and the specific terms of the reorganization.

When Used in an ITA 86(1)exchange of Shares in a Reorganization