Client File Extract 1. Mr. Andy Lee

Mr. Lee is a single 50-year-old public servant who wishes to invest

his savings of $100,000 by building up a 'blue-chip' share portfolio in

relatively safe, well known and respected companies.

Mr. Lee was a keen observer of the Royal Commission into

Misconduct in the Banking, Superannuation and Financial Services

Industry in 2019 and has strong views about corporate ethics and

the remuneration of directors.

Mr Lee wants to exercise his vote as a shareholder to ensure that

company directors are not being overpaid. He is also keen to ensure

there is proper corporate governance and the directors are

managing the company efficiently and ethically.

Mr Lee is unsure whether he should buy shares in a public company

or a proprietary company. He is also unclear about what class of

share or shares would best suit his particular investment interests.

Required Questions

1. Should Mr. Lee purchase shares in a public company or a

proprietary company? Explain why,

using your own words

.

10 Marks

2.

What class, or classes of shares do you think would be most

suitable for our client Mr. Lee? Explain why,

using your own

words.

10 Marks

Please support your answers to both questions with relevant

sections of the

Corporations Act 2001

and/or case law.