Research On Establishing Independent Director Mechanism In Our Country

It attaches great importance to introduce independent director mechanism for the purpose of improving corporate governance in our country. But the independent directors shouldn't be deemed as the decoration of the companies, and the system itself should be considered and weighed together with the corporation law as a whole.As far as the mechanism of balance of power within the board is concerned, traditional control mechanism can't keep back the expanding of the power of board of directors, in order to prevent this kind of power be abused. It is necessary to control the behavior of the board of directors, independent director mechanism is a better control mechanism and the value target of independent director mechanism is to guarantee the behavior of board of directors been conformed to the demands of all interrelated interest parties. The independent director plays a greatly important role in improving the independence of the board, preventing internal control from insiders, and protecting shareholder's rights. So, I believe that it is necessary for us to introduce the independent director into Chinese listed companies because internal control is so popular in our corporate governance. Of course, independent directors mechanism need favorable environment of system so that its function can be developed better. So, in order to perfect this system, much more aspects should be taken into account, such as the substantive and procedural matter concerning, the appointment, maintenance of independent, rights and obligation compensation of independent directors.