A majority of a firm's directors must be independent of the firm's management.

Question

Quizplus · Accepted Answer

According to corporate governance best practices, a majority of a firm's directors should be independent of the firm's management. This is to ensure that the board of directors can provide objective oversight and make decisions in the best interests of the company and its stakeholders, without being unduly influenced by management. However, there may be situations where the majority of directors are not independent, such as in the case of family-owned businesses or closely held companies.

A Majority of a Firm's Directors Must Be Independent of the Firm's