280.10. For the purposes of this division, if an individual receives shares of the capital stock of a particular corporation that are eligible small business corporation shares of the individual (in this section referred to as the “new shares”), as the sole consideration for the disposition by the individual of shares issued by the particular corporation or by another corporation that were eligible small business corporation shares of the individual (in this section referred to as the “exchanged shares”), the new shares are deemed to have been owned by the individual throughout the period that the exchanged shares were owned by the individual if(a) Division XIII, paragraph c of section 528, sections 536 to 539, Chapter V of Title IX or sections 551 to 553.1 and 554 applied in respect of the individual in relation to the new shares; and
(b) the aggregate of all amounts each of which is the individual’s proceeds of disposition of an exchanged share was equal to the aggregate of all amounts each of which was the individual’s adjusted cost base of an exchanged share immediately before the disposition.