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since the board of directors is made up of human beings with selfish tendencies, formation of...

since the board of directors is made up of human beings with selfish tendencies, formation of board of directors irrespective of its configuration, cannot eliminate the agency conflict." fully evaluate this assertion

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The primary objective of board of directors is to oversee the performance of the company/management, and act in the best interests of shareholders.

Board of directors are elected by shareholders, and thus there exists a principal-agent relationship, wherein shareholders acts as principal and board of directors as agent. Agent should ideally act in the best interest of the principal. However, since the board of directors is made up of human beings, and at times human beings can be selfish.

In case, the board of directors give more importance to their own interests or the interests of the company management over shareholders, agency conflict cannot be eliminated.

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