A Study On Situations Of Independent Director System In China

Successful corporate governance is important for building modern enterprise system. However, the public listed companies in China always suffer from poor Corporate Governance Mechanism and the interests of the medium and small stockholders are hurt. In order to regulate Chinese securities market, ensure the interests of the medium and small stockholders, further improve the governance structure of listed companies, standardize their operation, China Securities Regulatory Commission (CSRC) formulates the Guidelines for introducing Independent Directors to the Board of Directors in listed Companies. All domestically listed companies shall make necessary amendments to the articles of association in accordance with the requirements set in the Guidelines and appoint qualified persons to be independent directors.Theoretically, it is a good way to complete corporate governance and protect the interest of medium and small stockholders. Actually, the implementation of this institution has not been very satisfactory so far due to some problems such as laws, regulations, independence of independent director, incentive and restriction mechanism.This paper analyzes the function of independent directors and proposes the further theoretical strategies and suggestions on the basis of research of many researchers. The paper includes five parts. The first part introduces the background and meaning of writing to prove the importance of doing such a...