The Incentive And Restricting Scheme Of Independent Director System

Today independent director system has been the important instrument for companiesto improve management and strenthen supervision. The essential of independent directorsystem is independence, with which it can maintain its value. Complete incentive andrestricting scheme is dicisive to keep the independence of independent director system.Proper incentive and specific restricting scheme constitute the basic system guarantee forindependent director system to exercise its functions and powers according to law. Someexamples of listed companies with better practice of independent director system have p-roved such fact. In another word, to complete incentive and restricting scheme is the si-gnific step for strenthening independent director system in our country.At present, to introduce independent director system as an system innovation of impr-oving management in listed companies has been identified abroad. However, some probl-ems revealed during the construction of independent director system have showed that th-ere's still hardship in completing the system. The lack of restricting and suitable incentiv-e make it hard to keep the independence of independent director system. By thoroughdiscussion of "incentive and restricting scheme of independent director system", togetherwith the newest law and practice of independent director system, this essay reveals thedefect of incentive and restricting scheme in independent director system. Meanwhile it st-udies the improving way by comparising and using the succesful foreign examples, withthe aim to be helpful to the completement of independent director system and the healt-h development of modern companies.