Client File Extract 1.Mr.Andy Lee

Mr.Leeis asingle50-year-oldpublic servantwho wishes to invest his savings of $100,000 by building up a'blue-chip'share portfolioinrelativelysafe, well known and respected companies.

Mr.Leewas 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 Leewants 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 Leeis unsure whether he should buy shares in a public company or a proprietary company.He is also unclear about what class of shareor shareswould best suit his particular investment interests.

Required Questions

1.ShouldMr.Lee purchaseshares 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 answersto both questionswith relevant sections of theCorporations Act 2001and/or case law.

Total20 Marks

Client File Extract2: Hospital Waste Ltd

Hospital WasteLtdisa successfulsurgicalwaste management company.

The three directors are Elon Tusk, Sandy Tong and Liang Lu.

Hospital WasteLtd has won a major contract to collectsurgicalwaste fromfifteen hospitals acrossMelbourne and regional Victoria.

Tofulfil this contract,HospitalWasteLtd needs to raise $8 million to enable itto upgradethe safety ofitshazardouswaste collection systems.

Required Questions

1.Using your own words, advise the directors howHospitalWasteLtd should raise the $8million.

10 Marks

2.In your opinion, will a disclosure document be necessary?Why or why not?

10 Marks

Please support your answer with relevant sections of theCorporations Act 2001and/orrelevantcase law.

Total20 Marks