Thinks Of Independent Director

It has a history of 5-6 years that we have independent directors in Listed Companies in China. Let's look back at the development of independent directors, there is something we are pride of, but something unsatisfactory that the investors and governments have to face. For example, independent directors are not independent, independent directors don't know the specialized knowledge so well, independent directors can't fulfill their responsibilities, independent directors only act as consultants. There are different reasons of above phenomenon. For instance, the right and the responsibilities can't be defined, the specialized knowledge of the independent directors can't meet the requirement, the pay and effective incentive mechanism can't display function, and others that are related to macroscopic environment. Among above reasons, what I think the most important is there is no effective system that can ensure independent directors fulfill their right and responsibilities.With the advancement of reform of non-tradable shares, those Legal person stocks that can't be circulated free before begin to circulate in the stock exchange market, initial public offering under the new rules need a sound corporate governance structure, standard company management. The functions of independent directors are put a high position again. Only their right and responsibilities can be clearly defined by rules, can their position be enhanced.And we also need a set of efficient management rules that can ensure independent directors fulfill their right and responsibilities. such as a set of information communication rules between the independent directors and listed companies. We can also avoid that independent directors don't fulfill their responsibilities by a set of hiring and Elimination Mechanism.adopt all kinds of benefit driving mechanism including the time power system. We can raise the admittance threshold of independent directors, well control the qualification of independent directors. We also need found responsibilities insurance policy of independent directors by building a sound market Environment. We need give training of Occupational ethics and Service skill to our independent directors by creating independent directors association. Make clear the responsibilities of independent directors through legal construction, give well support to them to display their functions.