Issue 2: The company has its own constitution (previously called the memorandum and articles of association). In the constitution it stated that the A class preference shareholders were entitled to a dividend of 5.5% each year. The directors would like to reduce this rate to 2.25% given the current financial position of the company and propose replacing the existing rule with a new rule reducing the dividend to 2.25%. Issue they seek advice on: 1. Can the Aclass preference shareholders prevent the company from changing