Theory Of The Independent Director System Of Listed Companies In Our Country

Independent director derived from American corporation governance system. Innearly one hundred years’ history, independent director system has been used forreference by many other countries. Our country instituted independent director systemin1990’s. But, independent director system has not played a reasonable role, astrigger a debate about whether it is necessary to initiate and keep independent directorsystem in China. In fact, independent director system is important for improvement ofthe corporation governance system, protection of the shareholders’ profit, and a nicermarket environment. So, we should pay more attention to independent director system,and on the basis of our current situation, resolve problems encountered. The first partof the thesis defines the concept of the independent director, and states the origin andmeaning of the independent director. The second part stresses at and the theoreticalbasis of independent director system, concluding that independence is the essence ofindependent director and efficiency is the practical basis of independent directorsystem, and states the standards to estimate the independence and efficiency, layingthe foundation for the next part’s discussion. The third part, on the foundation of firstpart and second part of this thesis, overviews the current situation and problem of theindependent director system of our country and origin thereof, and advises to improvethe independent director system from perspective of how to ensure independence andefficiency.As mentioned above, the important value of independent director system in corporategovernance shall be regarded, and independent director system shall be used to ensurethe profit of corporate, shareholder, and be good to the market circumstances. Theother countries’ experience, on the basis of current situation of our country, can bewent by to settle problems met as instituting and improving independent directorsystem.