Company altered its articles by adding provision allowing directors the power to buy out, at a fair price, any shareholder who competed with the business of the company. A minority shareholder, who carried out a competing business, challenged alteration. Held:
· Is entirely for benefit of company that members who compete with company be bought out
Ø i.e. if they are members, more likely that they will get benefit of information which will help them compete with company.
· Thus alteration is valid.