The Independent Directors Of The Legal System In China's Legislative Building,

At present, we are still in the start phase of the establishment of independentdirector system in China, which relevant theoretical research and practical analysis arenot mature enough, especially in the legislation field. So, in this paper I elaborate on theestablishing the independent director system in China as well as the necessity forintroducing such system. This paper includes four parts. In the first part, I set forth the principles ofbalancing system in the cooperate management, based on which I analyze thedisadvantages of the current cooperate management in China. Then, I present theindependent director system with the expectation of intensifying the balance andsupervision to the power of cooperate officers through introducing the independentdirector into the management structure. Secondly, I explain the independent directorsystem in details such as the concept, the independent characteristic, the functions,duties of independent directors and the restricting and encouraging system on them.After the above explanation, I further make affirmative comments on the independentdirector system. Thirdly, I demonstrate the necessity for establishing the independentdirector system in cooperate management structure in China and rebut the opponentopinions that the supervisors and the independent directors could not coexist in Chinese 3独立董事法律制度在我国的立法构建cooperates and there is no necessity for introducing the independent director system,which accordingly make a basic background for the last part of establishing theindependent director system in China. In the fourth and the last part, it is natural todesign the establishment of the independent director system in China after the abovediscussion. It is emphasized that we shall change the current disadvantages and set upthe relevant assistant systems so as to establish the independent director system in China.At the same time, we shall have a clear and correct understanding to the independentdirector system on the different aspects such as qualifications for independent director,applicable scopes of the system, authorization procedures, independent director's rightsand obligations and the establishment of the Associate of independent director. All in all,the purpose of this paper is to provide a legislative plan for establishing the independentdirector system in China.