Independence Of Independent Directors: Explanation·Problems·Countermeasures

Independent directors, as one specific group of directors, distinguished themselves form general directors with their inherent characters, especially the feature of"independence". The independence, in the essence, lies in the fact that independent directors have no direct or indirect in the company where are incumbent.The regime of independent directors is a substantive legal device deriving from the legal concept of independent directors and incorporating legal ingredient from various branches of law. Specifically, the regime includes a series of laws and regulations governing the qualification, appointment, dismissal, obligations and liabilities of independent directors. Needless to say, the purpose of the regime is to ensure the proper and effective functioning of independent directors.AS an innovation, the independent directors'regime find its value in four aspects, as mentioned before, However, within the board of the directors, independent director have a unique function of supervision and balance, So, China should take into account its own specific situations when transplanting the independent director regime.