On The Role Of Independent Directors In The Growth Enterprise Market Supervision

The growth enterprise market (GEM) has been established for more than threeyears since2009, which had a reputation as the Cradle for Riches and placed greathopes by both high-tech enterprises and investors. However, the GEM has receivedmore and more criticizes and is loaded with danger due to the enterprises’ excessivepackaging and serious fraud as well as the market regulation failure. There is no doubtthat the failure to the investigation of the enterprises which are prepared to IPO andthe inadequate of supervision to the listing corporations are the main reasons. Thesupervision system is eager to reform and innovate. Nowadays, the IndependentDirector System is being advocated by the supervisors due to the key point to thecorporate governance around the world, and becomes the strong support for thesupervision system recreation of the GEM.The Independent Director System has received remarkable results and successduring its supervision and governance function to the listing corporations and beingapplied by the corporations around the world. Nevertheless, the Independent DirectorSystem is not all-powerful and has also defects, even exist in name only. The series ofcorporate scandals happened in America in the end of20thare the proof of the factabove. Therefore, how to recreate and reform it in according to the feature itselfduring the introduction and development of the Independent Director System hasbeing the focus key point to the supervisors.The thesis will analyze the current situation of the GEM as well as the mainproblems due to the supervision system defects first, and discuss the key methods andfunctions by expound and research the Independent Director System, after analyze thedefects and inadequacies of this system, meanwhile research its application to theforeign states and areas, as a result, make a conclusion of the lessons to the GEM ofours, and then raise some advices to the improvement of the GEM in China.