The phrase "any of the applicant company's board of directors is unable to independently exercise their functions" as used in Article 28-8, subparagraph 6 of the Rules means that none of the following circumstances may be present:
- A person serving as an independent director of the applicant company fails to satisfy any prerequisite set forth in the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies.
- Where more than one-half of the directors of the applicant company are mutually related in any of the following ways:
- Relatives within the second degree of kinship.
- Representatives of the same juristic person.
- The provisions of the preceding subparagraph shall also apply to the natural person who, when the government or a juristic person is the shareholder, and in its capacity as government or juristic person is elected as director, and designates a natural person as representative to exercise those functions on its behalf; and shall also apply to the government's or juristic person's representative who is elected to serve as director.