Independent Director System

The independent director system was formally established in 1970s in the United States. After developing in the next 30 years, it has been formed to a mature legal system and has become an improtant mean of corporate governance in American and England. It proves that independent directors in the Board of Directors has the fuction of supervising and restricting the operator, which effectively solves the problem of internal control and protect the legal rights of the company and all shareholders. Many countries in the world introduced it because of its special institutional value of solving the problem of internal control. It hasn't been a long time since the independent director system has been introduced to our country, therefore, it is still being explored, there're many issues for us to research both theoretically and practically. On the basis of explaining the history, theoretical basis, validity and limitation of the independent director system, this paper analyses the feasibility of introducing the independent director system to our country, furthermore, analyses and demonstrates some problems needed to be solved in the framework of the independent director system, and puts forward some constructive proposals.