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Options
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If a company wants strong corporate governance, it should ensure that the majority of the board comprises independent directors
Correct answer
- B
If a company wants strong corporate governance, it should ensure that the entire board comprises executive directors who are part of management
- C
If a company wants strong corporate governance, it should ensure that the board comprises very few independent directors
- D
If a company wants strong corporate governance, it should ensure that the full board comprises members of the promoter group
Why this is the answer
Strong corporate governance relies on a balance between executive and independent directors. Independent directors provide objective oversight, reduce conflicts of interest, and enhance accountability. SEBI mandates independent directors to ensure transparency and protect shareholder interests.
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