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Property Ltd is a company, which was incorporated in Hong Kong two years ago and adopts the current version of Table A of the Companies Ordinance (Cap 32) as its articles of association. The company does not state its object in its memorandum of association. The company now mainly engages in the car retailing business.Elton is a minority shareholder of the company. Recently, he heard from other shareholders that the board of directors intends to pass a resolution to widen the scope of business of the company by making investment in the real property market. The purpose of the resolution is to increase the source of income and hence the profit of the company.Elton and some other shareholders are not comfortable with such a decision of the board.Required:Advise Elton on the following:

(a) Whether he can commence a legal action to stop the board from exercising its power to pass the resolution. (6 marks)

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