I mean, this is definitely one of my pet peeves, but the wider context of this conversation is specifically a board doing stupid shit, so that's a very relevant counterexample to the thing being stated. Board members in general often do stupid/short-sighted shit (especially in tech), and I don't know of any examples of corporate board members recusing themselves.
Eric Schmidt on Apple’s board is the example that immediately came to my mind. https://www.apple.com/ca/newsroom/2009/08/03Dr-Eric-Schmidt-...