Bill S. Preston, Esq. is a director of Wyld Stallions Inc., a concert promotions company that he founded with his longtime friend Ted "Theodore" Logan. The company has been growing steadily over the last few years and has been nipping at the heels of its larger competitor, DeNomolos Concert Promotions ("DCP"). One day Bill is approached by Chuck DeNomolos, founder of DCP, who asks him if he'd like to join DCP's board. Bill, who has always admired Chuck, is flattered by the offer and accepts it.

When Bill tells Ted about joining DCP's board, Ted is upset because he thinks Bill is going to quit Wyld Stallions. Bill informs Ted that he intends to be a director of both companies. While Ted is relieved that Bill is not leaving Wyld Stallions, Ted tells Bill that he cannot be a director of DCP at the same time that he is a director of Wyld Stallions.

While Ted is legally incorrect about whether a director may simultaneously be a director of competing corporations, is he correct in suggesting that this may not be a good idea?