A Research On The Guarantee System Of Independence Of Independent Directors In China

"Independence" is the basic attribute, the key character of independent directors, is the foundation of their authorities. Losing independence, independent directors will be worthless. The reason that the independent director system is thought to be helpful to business management, lies in the fact that independent directors have no substantial relation with the shareholders and managers of the company. They can exercise their functions and powers fairly and objectively. In the meantime, independent directors must be entrusted substantial powers to participate in business management and must be appointed strictly. The phenomenon of lacking proprietors and insider control is currently in the companies of our country, and it is hard to form effective mechanism of binding and balance. Therefore, the problem is serious to guarantee the independence of independent directors in china. And it seems to be very important to establish a system including a series of laws and regulations governing the qualification, appointment, dismissal, power, salary, obligations and insurance of independent directors.