Independent Director System To Improve The Corporate Governance Structure

Independent Director Institution is the result of centralized leadship system. From the practical performance of Independent Director Institution in the western countries such as U.S.A and U.K, its implement takes effect on the consummation of Corporate Governance to some extent. The bankruptcy of Enron and WorldCom stirs the discussion and ponder of the perfection of Independent Director Institution in the circle of theory and practice. According to the actuality of listed companies in our country, China Securities and Exchange Commission introduces Independent Director Institution in order to consummate Corporate Governance, promote the normative operation of listed companies of our country.This essay is designed to make research and analysis from the feasibility, function orientation, and validity of Independent Director Institution. Firstly, from the introduction reason and development of Independent Director Institution, this essay demonstrates the development of Independent Director Institution concisely, and prove the feasibility and necessity of the introduction of Independent Director Institution in our country by combing the defects and actuality of listed companies in our country; Secondly this essay demonstrates the function orientation of Independent Director Institution in our country, probes into the institutional environment of the implement of Independent Director Institution in our country. And makes research into the validity of Independent Director Institution in our country at present by the means of theory analysis and positive research. The result shows that due to the influence of many subjective and practical factors. At this stage, Independent Director Institution doesn't take distinct effect on Corporate Governance and the promotion of corporate performance. Then, the essay comes up with some advice to the perfection of Independent Director Institution by referring to the latest theory and practice of Independent Director Institution in U.S.A and makes research into some issue of independent director of finance and the reconstruction of supervision system of finance of listed companies in our country.