Independent Director System Of Listed Companies In China

The Company System of independent director is a kind of company management system originated in America in the 1960's or 1970's, which was established on original intention for settlement of problems about "insider dealing" engendered by separating ownership from managerial authority in listed company and for perfecting systematic corporate management. Nowadays, it has been actively enforced as significant measures to perfect formation in managing corporations by many countries.The public listed companies in China always suffer from poor Corporate Governance Mechanism and the interests of the medium and small stockholders are hurt. In order to ensure the interests of the medium and small stockholders, further improve the governance structure of listed companies, standardize corporate governance level, On August 16, 2001, China Securities Regulatory Commission issued about guidance opinion of establishing the independent director system in list companies, which signed that independent director system was formally enforced. According to the guidance opinion, the listed companies have employed the independent directors, But owing to the shortage of relevant law regulations and influences of our country's special political or economic system and social environment, the effect was not as what investors expected, so that some people asserted that the system was not suitable to our country and denied the establishment of this system in our country. In America, Independent Director System also suffers condemnation both in speech and in writing, owing to "the Enron Scandal". How about its future in the world, particularly in China? In this sense, the design of Independent Directors in listed companies needs to be improved.This thesis is intended to safeguard the independency of Independent Directors from the perspective of the design of Independent Directors, through comparative analysis and an inductive method. It consists of four parts. The first part introduces the definition and the process of generation and development about the independent director, and on the foundation of defining the conception of independent director system, I analyze the characteristics and influence of it and point out that the core of independent director system is independence. The...