C, a director, had a ten-year service contract with D, company. Power was inserted into articles allowing shareholders to appoint and dismiss directors at will. C was dismissed prior to end of 10-year period. Held:
· Articles were validly altered.
· Existence of prior contract does not affect validity of a change in articles.
· However director still had claim for damages.
i.e. as obligations in contract were not changed by alteration in D’s articles.