Which of the following factors indicates a non-executive director may lack independence?

A non-executive director's independence is crucial for effective governance, and this independence can be compromised by various factors. Close family ties with significant shareholders is a strong indicator of potential bias or influence, which undermines the objectivity required of a non-executive director.

When a non-executive director has close relationships with significant shareholders, it raises concerns about their ability to make impartial decisions that serve the best interests of all stakeholders. Such ties can lead to conflicts of interest where personal loyalties might impact professional responsibilities, thereby impairing the effectiveness of oversight functions typically expected from non-executive directors.

In contrast, participation in board meetings, receiving a director's fee, and being a member of the board for less than nine years do not inherently suggest a lack of independence. Regular participation is a part of their role and essential for being informed and engaged. Receiving a director's fee is common and generally does not affect independence unless the compensation is tied to performance-based incentives that may conflict with the director's duty to act in the company's best interest. Similarly, the duration of board membership alone does not determine the independence of a non-executive director. It is possible for someone to remain independent even after many years on the board, provided they