Role of the Board of Directors in Corporate Governance

Company XYZ is scheduled to hold its Annual General Meeting (AGM) next month. As a part of the AGM, the election of the board of directors will take place. The board of directors is responsible for overseeing the management of the company and making key strategic decisions. Recently, there has been a discussion surrounding the importance of having independent directors on the board.

Which of the following statements about the role of the board of directors MOST accurately reflects best practices in corporate governance?