The problem with the independent directors has been that: I. Their selection has been based upon their compatibility with the company management II. There has been lack of proper training and development to improve their skill set III. Their independent views have often come in conflict with the views of company management. This has hindered the company’s decision-making process IV. Stringent standards for independent directors have been lacking
Explanation:
Statement I is mentioned in the first paragraph - “Unfortunately very often directors are chosen on basis of friendship and sadly pliability”. Statement II is found in the third paragraph which states that independent directors need to be trained in their roles and responsibilities. Statement III is incorrect. Rather, it is contrary to the view taken by the author. Statement IV is mentioned in the second paragraph which states that stringent standards need to be put in place for the independence of directors. Option 4 mentions Statements I, II and IV as correct statements. Hence, the correct answer is option 4.
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