Final answer:
The independence of GE's board of directors is proven through factors such as the composition of the board, the presence of external directors, and the establishment of key committees.
Step-by-step explanation:
Proving the independence of GE's board of directors requires examining factors such as the composition of the board, the presence of external directors, and the establishment of key committees. First, a board with a majority of independent directors is an indicator of independence.
Independent directors are individuals who do not have any material relationships with the company or its executives, ensuring they can make unbiased decisions. Second, the presence of external directors, who come from outside the company, adds an additional layer of independence.
These directors bring fresh perspectives and diverse experiences. Finally, the establishment of key committees, like an audit committee with a majority of independent directors, enhances the board's independence by providing oversight on financial reporting and internal controls.