Q3 L and M acquired some preference shares in N plc – an investment company in the UK. L owns 9% and M obtains 8% of the

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Q3 L and M acquired some preference shares in N plc – aninvestment company in the
UK. L owns 9% and M obtains 8% of the preference shareholdingsof N plc. They received
remarkable dividends from their shareholdings in the last coupleof years and were very
satisfied with the reliable income.
However, last month the N plc altered its articles and as aresult, the preference
shareholders with shareholder holdings less than 10% would bedeprived of any dividend
rights.
L learned about the news and was furious about it. He intends toseek legal advice and
challenge such deprivation of his rights. Meanwhile, M, as theinvested in various other
companies was reluctant to join L to bring a legal suit againstN plc.
Discuss the standard procedures to alter the company’sarticles.
Discuss L and M’s positions as minority shareholders, and advisethem as to whether
they could apply to the court to cancel such variation.