Research On The System Of Independent Director

Independent Director is the director that has no other duties in the corporation, no relations with the corporation and its main shareholders which may disturb his independent judges. Series of problems appear in the public-held corporations of our country in recent years. A serious problem among them is that the controlling shareholders intervene the corporation's asser and management wantonly, which largely aggrieves the corporations and its common shareholders. The system of Independent Director is therefore introduced into our country to consummate the structure of the public-held corporations and protect the common shareholders. There have two opinions on the function of the system of Independent Director. One thinks that the system is so good that should be greatly pushed. Our main target is to make the independent director really "independent" and to enlarge its function. The other thinks that the system is not necessary. It's only a sort of furnishings to cater for the requests of certain departments. The writer thinks that the system appeared in the case-law countries first because of their history background, law background and certain problems. The public-held corporations in our country have different backgrounds. Therefore, we should take care of introducing the system into our country. Thy system is good for fathering the structure of the public-held corporations and can be a means for solving the problem of controlling shareholders. In our country, the system is a means to consummate the fathering structure of the public-held corporations, but not the structure itself.