Thanks in large part to your sage advice, brothers Paul and John and their third partner, George, have successfully launched their surfwear business and have opened a very successful storefront in Los Angeles. They have successfully incorporated their business as Fantastically Innovative Surfing, Inc. and have run the corporation for almost two years now. They have made more than $200,000 in net profit in year one and more than $350,000 in net profit in year two.

In the beginning days of the company, this business was simply a side job for all three individuals. As their business has grown more successful, however, they have realized that their surfwear business could be huge, thanks to Paul's sage business acumen, John's innovative surfwear technology, and George's excellent experience and skills in sales.

Paul has come to you with the following questions and concerns regarding Fantastically Innovating Surfing, Inc. Your responses to each of the following questions should be approximately one to two paragraphs. You should substantiate your responses by providing any appropriate references to the cases and model statutes that we are studying in our course; no outside references are required. You may feel free to incorporate additional facts and assumptions into the hypothetical scenario, as long as you clearly note them.

1. During the same month, George has indicated he would like to aggressively expand and open up a second storefront in San Diego and a third store front in Santa Monica at the same time. John has serious concerns and thinks that the focus should solely be on slowly expanding the Los Angeles location. Paul does not have particularly strong views, but this disagreement between George and John has become more intense in recent years. The corporation is about to hold its annual shareholders meeting with Paul, John, and George as the sole shareholders. They are also the only three directors of the corporation, though they are also contemplating adding two additional directors: Roberto, who is one of John's best friends and a software engineer who has helped the corporation with its website; and Denise, who is a local surfer, is an avid social media advocate for the corporation, and has close ties to the surf community in Santa Monica. Paul has serious reservations about adding any new directors at this time. What considerations do the shareholders need to weigh at the shareholders meeting? What types of votes do they need to hold? What documentation do they need to prepare to thoroughly document their decision? What steps do they need to take to change the number of board members on the board?

Apply MBCA please