Independent Director System Of Listed Companies In China

Independent director system has rooted and developed from America, which aimed to monitor the behavior of corporation operators effectively and prevent intestine staff controlling the corporation. This system can ensure the decisions made by corporation are reasonable so as to safeguard the interests of minor share holders. With the stock-holding system reformation in the national enterprise, scale of public company expands quickly which brings about the serious issue of corporation governance. So introducing and consummating the system of independent director that can make present corporation governance perfect is very necessary.In this paper I will apply comparative and demonstrative in the aspect of research methods, which mainly focus on the incidents of Le Shan Electricity, Yi Li company, ST Zhen Bai Wen and Northwest Chemistry. Referring to the annals of public company and the result of investigation about operation of independent director in the public company, I will start from the basic theory of independent director system, which will be parted for four sections in the field of legal research about independent director system in the public company in China.In the first section, it mainly focuses on the basic theory of independent director system. On the basis of analyzing the experience from different countries, the definition of independent director system will be construed, which relates to the function and character of independent director system. In the second section, I will analyze the practice and revelation of foreign independent director in the area of America, Britain, Japan and Hong Kong, which aims to provide reference for the development of independent director in China. In the third section, present situation about independent director in public company will be analyzed. By the analysis of the background and practice about independent director system in China, especially on the basis of demonstrative construction, we will realize the main five unreasonable points in the independent director in China. In the last section, I make a design for perfecting the independent director system in China. I will analyze it in six parts which establish creative ideas about the qualification exam, credit awards and insurance rules for independent director system in China.