Articles of company had provision requiring special procedure to be followed where class rights were to be ‘affected’ in any manner. Company proposed to issue new preference shares ranking paripassuwith existing preference shares. Held:
· Rights of existing preference shareholders were not affected by issue of paripassupreference shares.
· This because in formal terms rights of preference shareholder would be the same
Ø albeit that the voting power attached to each preference share would be less effective than before