The Public Listed Companies In China Indeoendent Director System Research

Independent director system has achieved some success in the Western to improve corporate governance structure, protect the interests of medium and small stockholders as a institutional arrangements to prevent "internal control". Western enterprises have established the good corporate governance management principles.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, In the 20th Century 1990s, China's listed companies are starting to introduce independent directors, and public people have given their concern on independent directors system. Thus on August 22, in 2001, the China Securities Regulatory Commission published the "the guidance advice" to demand the listed companies to establish the independent directors system to improve corporate governance structure. But the implementation of this institution has not been very satisfactory so far due to some problem such as laws, regulations, independence of independent director, incentive and restriction mechanism.This paper analyzes the development and some problems of independent directors and proposes the further theoretical strategies and suggestions on the basis of research of many researchers. The paper includes four parts. The first part introduces the definition, the process of generation and development about the independent director and the basic theory of independent director. The second part points out the reason for the implementation of the independent directors system and the development in China. In the third part, the author analyzes the implementation effect of this system on Chinese public listed companies. In the result, the institution of independent director cannot take effect in Chinese public listed companies. The fourth part, the author put forward own advises about how to improve the efficiency of the system in allusion to these causes.