A Study On The External Director System Of China 's State - Owned Companies

Outside director system was introduced to the importance of the State-ownedcompany in one of the measures to improve the company ’s Board of Directorsbuilding. Outside director system of decision-making powers to solve thelong-standing state-owned companies, the implementation of the right to overlap andinternal control problems, can promote the formation of the board of directors ofstate-owned companies to better decision-making, and better safeguard the interestsof investors in state-owned companies. With the global economy, China’sstate-owned companies in order to adapt to the trend of economic development and amore competitive market, we must strengthen and improve the construction of theboard of directors of state-owned companies. Our outside director system introducedin the state-owned company is an important measure to strengthen and improve thestate-owned company building the Board of Directors. Combined with China andforeign regulations and practices relating to the outside director system, especiallythe pilot case practice situation and China’s foreign external systems directorSinotrans Group Construction Board of Baosteel, we can see that the construction ofexternal systems director at state-owned companies in the strengthen and improve thegovernance structure of the board of directors of state-owned companies, the Chinesestate-owned companies to improve decision-making and maintaining the interests ofinvestors and shareholders and have an enormous significance. Construction ofdirectors of state-owned companies outside the system continues to try, althoughsome achievements, but there are some aspects worth thinking and improve theevaluation of state-owned companies such as the source of outside directors, theindependence of outside directors, outside directors and aspects of the managementand incentive mechanisms and training systems.