Limitation And Perfection Of Independent Director System

Independent director system has always been a controversial issue in academic and practice since it was introduced into China. It is true that independent director system has its active function in improving traditional management system while the directorate cannot function well. However, it is also well admitted that the independent director system has never been a perfect system since it was bora. In other words, the independent director system has its own limitations. The civil law system is fusing with common law system. Under such a circumstance, it is positive for the independent director system been introduced into China. Despite the expectation China has on the system, the independent director system cannot function well under the typical situation of China, we have to discuss issues about (1) the definition of the independent director, (2) the qualification of the prospective independent directors, and (3) the role of the independent director in corporate governance framework. Before applying the independent director system to the corporate governance, and functioning with the supervision board, it should be a priority to realize the limitations of the independent director system theoretically and practically.This article will be composed of six chapters. The first chapter will start with...