What may cause a director to lose independence?

A director may lose independence due to various factors, such as having significant financial ties to the company, such as stock ownership or compensation packages that create conflicts of interest. Personal relationships with other board members or executives can also compromise their objectivity. Additionally, being involved in management decisions or having a long tenure on the board may lead to a lack of detachment from the company's operations. These factors can create situations where a director may prioritize the interests of the company or management over those of shareholders.