The need to clarify board requirements for a majority of independent directors with regard to corporate governance is of great importance and would be discussed in this article. According to Shleifer and Vishny (1997), corporate governance is the system by which companies are directed and controlled. In contrast, an independent director is someone who has not at any time worked for the company or held shares in the company. This director would also not be related to any of the key employees and would not have worked for any major suppliers, clients or service providers, such as consultants, accountants, lawyers, etc. In principle, as taken from Wikipedia, "an independent director is a director of a board of directors, who would have no material or pecuniary relationship with the company or the people linked to it, with the exception of tokens of presence”. It is the duty of the independent director to ensure that the board is active, effective and efficient. It is also his duty to ensure that the CEO performs his duties in accordance with the company's goals, mission and vision, as directed by the board of directors. The importance of the role of independent directors cannot be overstated and the main role is to improve the performance of the board and the company as a whole. These roles are however limited by various factors, the two most important being the information available to independent directors and the position/size of the company affected by transitions/lifecycle of the company and any material changes that the company could live. After mentioning the need for an independent director, specific positions on the board should be filled by independent directors (e.g. chairman...... middle of document ......ive Regulatory System for Australia's Small Corporations: Governance for Small Business‟. Melbourne, Victoria Law School ISBN 978-1-86272-692-5Australian Corporations and Securities Legislation (2011) ASIC Act 2001. Sydney, CCH.Banks G. (2006). ) Reducing Regulatory Burden: The Way Forward. Public Lecture, Monash Center for Regulatory Studies, Melbourne, May 17. Joshua, K. (2007). ac.in/coursepack/Commerce/CORPORATE_GOVERNANCE.pdf Nicholson, GJ & Kiel, GC 2007, 'Can directors impact performance? A case-based test of three theories of corporate governance', Corporate Governance: An International Overview of Regulations and Business. governance framework, http://www.pc.gov.au/__data/assets/pdf_file/0007/93598/08-chapter5.pdf