A Study On Independent Director System Of China's Listed Companies

Independent director system is one of the topics in recent years to focus on. For our listed companies, the independent director system is still a new thing, but it is undoubtedly the arrival of the independent director system will trigger a revolution in China's public companies.Chinese corporate governance mechanisms legislative model was chosen from the country's first introduction of the "Company Law". In the law, a binary system of our company model of governance was formal established. That is the establishment of the board of directors and board of supervisors, and the board of supervisors exercises oversight functions at the manager and directors. But in reality, the board of supervisors failed to effectively carry out its oversight functions. Supervision is weak, and the board of supervisors of the client phenomenon is widespread in our public companies. Loopholes in our corporate governance structure emerge frequently and trigger a range of problems. In 2001, the China Securities Regulatory Commission issued "The Guidance Opinion of Establishment of Independent Director in Listed Companies", the independent directors system of the common law system was officially introduced into the corporate management structure of China. Early 2006 formal implementation of the new "Company Law" requests an independent director system be a basic system for listed companies to establish down. Independent director system develops and innovate our existing companies monitoring mechanism based on the evolution of our social realities. The introduction of the independent director system was designed to protect the legitimate interests of small shareholders and bridge the existing gap of our board of supervisors.Three chapters constitute this thesis and the outline is as follows:Chapter one introduces the concept of independent directors and its character, the independent director system's content, production, development aboard and the functions of the independent director system.During the 1970s, the reality of American traditional corporate governance model was posed a challenge. Serious internal control issues led...