XYZ Ltd' issued capital consists of 5 000 fully paid ordinary shares, which were issued at $ 2 when the company was formed in 2010, as well as 5 000 fully paid 5% cumulative preference shares issued in 2014 at $5 each. The company has never declared dividends. In order to raise more capital, the board decides to issue a further 2000 cumulative preference shares. Advise the board on the following questions, citing relevant statutory and case law authority:

Would the issue of the further 2000 preference shares amount to a variation of class rights?

2)Are the preference shareholders entitled to demand a 5% dividend?

3)If a dividend was declared this year, would the holders of preference shares be entitled to claim dividends for 2015to 2018?

4)If dividends were declared in 2018, would the preference shareholders be entitled to participate along with ordinary shareholders in the payment of dividends after they (the preference shareholders) had been paid their 5%?