Briefly comment on the following statements : (iii) Independent Board is essential for sound corporate governance.

Independent Board is essential for sound corporate governance. An independent board is constituted by appointing independent directors in the Board. Independence of directors would ensure that there are no actual or perceived conflicts of interest. It also ensures that the Board is effective in supervising and, where necessary, challenging the activities of management. The Board needs to be capable of assessing the performance of managers with an objective perspective. Accordingly, the majority of Board members should be independent of both the management team and any commercial dealings with the company for ensuring good governance.