Andrew is a graphic designer from Kingston who specializes in designing logos for new businesses. His friend Bea, who has just started a new business making sneakers, is visiting from Vancouver. Andrew tells Bea he has just come up with a new logo idea she might like. While he goes into the next room to retrieve his drawing, Bea notices something shiny sticking out from under one of the couch cushions. She pulls it out to discover a very valuable gold watch. Without mentioning anything to Andrew, Bea pockets the watch. When Andrew returns, he shows her his design of a logo including a stylized arrow and a dot. Bea expresses admiration for the logo. When Andrew asks her if she would like to use it for her sneakers, Bea mentions that she would have to discuss it with her business partner. Andrew texts her a picture of the logo.
A few weeks later, Bea is back in Vancouver. She texts Andrew to say that her business will not be using the logo for their new line of sneakers, as they already have a finished product design. Bea gets a phone call from her friend Clara. She knows that Clara is really into jewellery, so she mentions the gold watch to her. Clara laughs and says, "What, are you selling jewellery now, too?" Bea laughs as well, and says, "Tell you what, since you're such a good friend, you can have it if you take me out for dinner sometime." Clara says, "Sounds like a deal! I'll come by tomorrow and get it off your hands." After she hangs up, Bea has second thoughts. She decides to have the watch appraised by a jeweller. The watch turns out to have a market value of $5,000. The cost of a nice meal at Bea's favourite restaurant, "Chez David," is $150. Bea decides to sell the watch on an online platform.
The next day, Clara comes by to get the watch, and Bea tells her, "You didn't think I was serious, did you? That thing is worth a lot!" Clara is upset, as she thought the two friends had a deal and she really wanted the watch.
Meanwhile, Bea's new line of sneakers has come out: they are called "Directionz" and they are emblazoned with an arrow-and-dot logo very similar to the one designed by Andrew.
Several months later, the shoes are selling out quickly. Andrew hears about this from friends and is quite upset that Bea "stole" his design. Suppose that before this entire scenario occurred, Bea had come to you for advice about her business. Her business partner, Farid, is a recent MBA graduate. He knows a lot about managing businesses, but not so much about sneakers. Bea wants him involved in the business, but she wants to retain control over the major decisions. Farid is also willing to invest quite a bit of money into the business. They also have two other friends, Greg and Helena, who are interested in investing in the business, but do not want to participate in running the business at all. Bea has decided to incorporate the business. Advise her on the following questions:
Who should be the director(s) of the corporation?
