The Brief Analysis On The Cause Of Current Independent Director System Situation And Relevant Improvement Method

The independent director system originated from Britain and the United States, andhave a long history in these two countries.It also has been nearly ten years history in China,and it was regarded as the best way to solve the problems of our corporate governancestructure.The designer of this system hope to push our enterprise system’s construction andto protect legitimate rights and interests of small shareholders. But this system did notachieve the expected effect. With the development of economy, the relative legal systemshould also keep pace with the times. However, Chinese corporation management takes"dual model",which has big difference compared to" single model "of Britain and theUnited States.Meanwhile,a series of problems make independent director system unsmoothdevelopment in China,such as our defective rules and regulations, unique ownership ofpublic companies leads board of supervisors unclear functions,the limits of its ownindependence.This paper came up with some methods to solve the problems through the analysis ofthe present situation and relevant cause of our country’s independent director system. Themain body of this paper is divided into three parts:firstly, author try to introduce the basicsituation of independent director system and the origin and development of this systemfrom the point of this system’s connation so as to grasp the whole framework.Secondly, theauthor try to analyze the reason of its unsmooth development in China.Last but not least,the author raise some ideas to perfect our independent director system in coordinate withour country’s practical situation.The main aspects are functional integration,rules andregulations improvement and independence strengthen.