Independent Director System Of Corporate Governance Research

In summary, corporate management means to the distributive mechanism of power and responsibility among the corporate insider shareholders, directors and the managers.There is a close correlation among the corporate management level and corporate business performance and its management structure.Independent Directors system (IDS) had originated from the US in the 1930s and basically matured in the 1990s. It had made great contributions to optimizing management and improving administrative performance in American companies. Hence,companies around the world took it.Our Companies boomed from the 1990s. At the beginning, the companies encountered such problems as the way to optimize management structure, to solve the problems of large controlling shareholder (the insider controlling), to improve supervision mechanism, to promote business performance,and so on.It marked the establishment of IDS adopted by Chinese listing corporations in the early of 1990s, when Chinese government published the Guiding on the articles of listing corporations,the Guiding on Establishment IDS in listing Corporations, the Management principles of listing corporations.Led and effectively promoted by the government,IDS played an important role in finding solutions to the above problems. Some problems inevitably exist in IDS itself such as the rationality, the sciences and the coordination with Chinese current condition and corporate legal system, since that IDS itself experienced a short period, and we adopted it mechanically at the initial stage to a large extent .The essay will explore the drawbacks in IDS and put forward some perfect suggestions in light of the relating regulations and the current situation of our country.