FRANKFURT (Reuters) - Volkswagen's (VOWG.DE: Quote, Profile, Research) two biggest investors each submitted rival proposals to change the carmaker's statutes on Friday that both know will likely result in a stalemate at the annual general meeting (AGM) on April 24.

Fearing legitimacy of a new VW Law, Porsche (PSHG_p.DE: Quote, Profile, Research) unveiled amendments that would significantly reduce the influence of Lower Saxony, the home state of Europe's biggest carmaker.

The sports car maker proposed reducing the majority needed to carry important decisions at VW shareholder meetings to 75 percent -- as is the case at most German companies -- from 80 percent now.

It also wants to eliminate the right of Lower Saxony or the German federal government to name VW supervisory board members, and would scrap a cap on individual shareholders' voting rights at 20 percent.

Porsche, which controls 31 percent of VW's votes to Lower Saxony's 20 percent, said these measures would make Volkswagen statutes reflect a decision last year by Europe's highest court that struck down a German law that effectively shielded VW from hostile takeovers by limiting shareholders' voting rights.

In a separate statement, Lower Saxony said it will propose amending Volkswagen's corporate statutes in a way that preserves its ability to block strategic decisions with its 20 percent stake.

That means that only a joint proposal from it and Porsche would be able to win approval at shareholders' meetings.

The state said it too was prepared to drop statutes that give the state the right to name VW board members and that limit individual voting rights at 20 percent.

"We expect that due to the fact that Lower Saxony has tabled its own proposal, that both the proposal of Lower Saxony as well as that of Porsche will potentially fail," the Porsche spokesman said.