Angus is a 44-year-old high school teacher who wishes to invest his savings of $100,000 by building up a blue-chip share portfolioAngus 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.

Angus 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.

Angus is unsure whether he should buy shares in a public company or a proprietary company. He is also unclear about what class of share/s would best suit his particular investment interests.

Angus seeks your professional advice.

Required

Answer the following questions for Angus. Support your answer with relevant statute law and/or case law.

a)        What is a share and what class, or classes of shares would be most suitable for Angus? 

b)         On what issues do shareholders have a right to vote and how many votes do they have?                                       

c)         How are shares purchased or acquired in a public/proprietary company?  

d)        Should Angus buy shares in a public company or a proprietary company? Why?