Font Size: a A A

On The Supervision Function Of Independent Directors

Posted on:2016-03-02Degree:MasterType:Thesis
Country:ChinaCandidate:Z K HaoFull Text:PDF
GTID:2206330470962958Subject:Law
Abstract/Summary:PDF Full Text Request
Independent Director System, as a supplementary of the oversight mechanisms in Supervisory Board during the wave of Business listing, has been introduced from the foreign advanced experience. The role of this system is to act in concert with the mechanisms of Supervisory Board. They make influence together to complete the company’s supervision and improve the corporate governance structure. At this way, it allows the company to enter the normal operation of the track.But people have different ideas about whether it can play the value excellently. What’s more, as a system coming from foreign countries, it can’t make a good combination of local market in a short time under the China’s basic national conditions.The root cause of this phenomenon is that the structures of listed companies have a a large difference between China and foreign countries. The shareholders mode in Europe and the United States is more dispersed compared with the same field in China. Most listed companies in China comes from state-owned enterprise restructuring. Therefor the phenomenon of ownership concentration and shareholder equity overweight is quite common.In this case, the related party transactions is raised. At the same time, the controlling shareholder will use the stake to affect the strength of the company decision-making. Majority of independent directors have no relevant expertise and energy to perform supervisory duties, and it make independent director system be a decoration.The author makes comprehensive discussion about the Independent Director System, such as the background, the introduction of the system, the legislation and research status and so on.As the second step, the author demonstrates the practical role of independent directors in corporate governance results. In this process, the author puts focus on the system perspective, the motivation, the corporate governance and cooperate with the Board of Supervisors.All of these constitute of the causes that Independent director system can not play its role.Then, the author put forwards specific measures to perfect Independent Director System against the background of the company structure under the current situation of our country, in order to improve the effectiveness of supervision and performance of duties of independent directors.This article includes two parts, the main body and the conclusion, and the main body has four chapters.The first chapter describes the generation and development of Independent Director System and corporate governance structure.What’s more, this paper also describes the "a syste model" and "dual system model" in corporate governance structure which exists now and analyzes the advantages and disadvantages of these two supervisory modes.The second part is about the importance of Independent Director System.The author talks about the introduction background, the legislative developments, the role of implementation oversight function and its value in the company’s comprehensive elaboration.The third section discusses the implementation plight of Independent Director System about the effectiveness analysis, status monitoring and its oversight function. In the last part, the author proposed some recommends about how Independent Director System can give full play to its oversight role in the corporate governance structure proposed under the current circumstances.
Keywords/Search Tags:Independent Director System, supervision, Board of Supervisors
PDF Full Text Request
Related items