| The introduction of Independent Director into Chinese listed companies is the result oflearning the experience of the England and America. The goal of the introduction ofIndependent Director has positively helped to protect interests of medium-and-small-sizedinvestors during the course of reform of listed companies.This essay has discussed the legal problems about the Independent Directors.Independency is the foundation and soul of Independent Directors and also the cut-in pointof this essay.During the course of the reform of the listed companies, this system has beenadvantage to our listed companies. However, the independency of Independent Directors ishard to be guaranteed in the practice of listed companies in China, which may bemanifested from the perspective of nomination, power, incentive, and liabilities ofIndependent Directors. In order to solve this situation, the essay has given the suggestionsof how to consummate the Independent Directors System in six parts by viewed the systemand related the reality of the companies. The first part mainly introduces the mode of thecompanies' governance and the background and reason of Independent Director System.Besides this, the second part has gotten the conclusion that the Independency is the core ofIndependent Director System. The third part has analyzed the legal effect in the governanceof the company. The fourth part described the situation and troubles of our listedcompanies' .The fifth part expatiates the function of the Independent Director System. Thesixth part has brought forward the suggestions how to guarantee the independency of theIndependent Directors and perfect the system. Finally, the essay has gotten the conclusionthat the effect of the Independent Director in the listed companies cannot be replaceable.But there is still a long way for us to go. The advancement of the company governanceneeds not only the perfect of the Independent Director System, but also the support of theexterior environment. |
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