The board of directors can secure its independence by permitting one individual to function as both,the chief executive officer of a company and the chairperson of its board.

Question

Quizplus · Accepted Answer

Allowing one individual to hold both positions can create a potential conflict of interest and undermine the independence of the board. It is generally recommended to separate the roles of CEO and chairperson to ensure appropriate checks and balances in corporate governance.

The Board of Directors Can Secure Its Independence by Permitting