The Independent Director Levering Function In Chinese Public Company

With democratic reforms being strengthening in the country, promoting themarket economy under the background of the process of democratization, theindependent directors of the democratization of the institution, as a listed companygovernance important breakthrough, to which the research is meaningful.Independent director system as some imported goods, how to make them local is asection of new years issue. It is an inherent part of the corporate governance in theprocess of democratization to summarize the situation, analysis, check the balancefunctions on the independent director system of listed companies in China, so that wemay identify the problems, making perfect recommendations.This paper constructs an in-depth analysis of independent directors to itschecking balances, using empirical study to clarify and analyze the existing problems.Drawing lessons from Western countries’ advanced experience in role of checks andbalances mechanism for independent directors, we make proper recommendations forthe role of checks and balances mechanism for independent directors in China. ajorresearch papers are summarized as follows:By definition of check and balance functions, position and duty of theindependent directors, and by definition of the corporate governance and therelationship between the related fuctions, we construct of the working system of theindependent Director balances function. By colleting data and doing analysis on threesample companies’ balance functions of independent directors such as Sinopec,Youngor, X.E.Flavour by means of empirical research on the analysis of the collecteddata, we are looking at some problems. In addition, we describes the experience ofthe American and the English as well as the Japanese, we conclude the generallessons of experience in China. Through this research, this article finally proceedingfrom the national conditions in China, based on the present problems and theconclusion of lessons from foreign advanced experience, we make specific advice forthe improvement of China’s independent Director balance function mechanism.