Independent Director System In China Legal System,

Independent director system originated from countries from Anglo-American genealogy of law. Introducing independent directors into the listed corporations is an effective way to establish scientific corporate governance, avoid insider control, and protect the interest of the minority shareholders. At present, the construction of independent director system of listed companies in China has just started both in legislation and in practice. Full attention should be paid to the definition independent directors, system construction, and the problems to be settled in process of construction. In order to strengthen and perfect the construction of the system, the author come up with viewpoints such as how to perfect the competence for a post, selection, power and restriction mechanism, and legal responsibilities system of independent directors. Effective self-disciplined organizations of independent directors should be established, and relevant external supervision institute be perfected to make the administration structure of companies reasonable.