Halifax Bhd ("Halifax") is a company registered in Bandar Sunway which manufactures antique clocks. The share capital of the company is RM 2000 divided into 1500 ordinary shares and 500 preference shares. The company's constitution provides that the rate of dividends for the preference shares is 6%. The company has recently decided to reduce the rate of dividends from 6% to 3% for the preference shareholders. Advise the Board of Directors on the procedure to be complied with. Include in your answer if there are any challenges that could be made by any person.

10 marks>