Corporate Finance Q33

33Following information is provided for a publicly listed company. The company has a 8-person board of directors. The board is chaired by the chief executive officer (CEO) of the company. All members of the audit committee are outside directors with relevant financial and accounting experience. Which of the following changes will significantly improve the corporate governance of this company?

Option : C
Explanation : To ensure good governance practices, the chairman of the board and the CEO of the company should be independent. Otherwise, if the chair of the board is a CEO of the company, it may hamper the efforts to undo the mistakes made by him or her as a chief executive.

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