“Independence” is a central corporate governance idea in the discussions of the Sarbanes-Oxley era. But have the SEC, public companies, mutual funds, stock exchanges, accountants, and proxy advisers gotten carried away by the pursuit of independence? What are its limitations and does it interfere with other essential elements of governance, particularly knowledge and informed risk-taking? How does it affect the functioning of boards and accounting firms? What can we learn by comparing publicly traded with privately held companies?
