Andrew, James and Michelle have just been donated shares in a private limited liability company, SunBliss Limited. Andrew and James have received 250 ordinary shares each, while Michelle has received 300 5% cumulative redeemable, non-voting preference shares. The issued share capital of SunBliss Limited is divided into 750 ordinary shares and 300 5% cumulative redeemable, non-voting preference shares. The donor’s father has retained 250 ordinary shares in the company. Michelle wishes to amend the memorandum and articles of association of SunBliss Limited and convert her shares into ordinary shares. James wishes to buy property and has been asked to pledge his shares in favour of the bank providing fi nance.Required:
(a) Advise Michelle(i) of her rights as holder of preference shares as compared to ordinary shares in SunBliss Limited; and(ii) whether she may amend the statutory documents of the company to convert her shares into ordinary shares; and (7 marks)
