Answer: Characteristic 2

**Explanation:** - **Characteristic 1** is problematic because having more executive directors than independent directors reduces board independence and oversight effectiveness. - **Characteristic 2** represents effective governance as key board committees (audit, compensation, nomination) having majority independent members ensures proper oversight and reduces conflicts of interest. - **Characteristic 3** is a governance weakness as it combines the CEO and chairperson roles, which concentrates power and reduces board independence. Characteristic 2 best reflects effective corporate governance as independent committees provide crucial checks and balances.

Author: LeetQuiz Editorial Team