The Legal Status Of Independent Directors

The legal status of the independent director mainly reflected in the laws andregulations of independent directors rights and obligation and liability,which therights and obligations of the final confirmation and ensure the implementation of theformal laws and regulations.China’s independent director system relative to othercountries, a late start, but the development is rapid.in August16,2001,China’sSecurities Regulatory Commission issued《Guiding opinions on establishing theindependent director system in the listing Corporation》，which Marked the formalestablishment of the independent director in China.Chinese shares in the listing Corporationby the corporate control of the large shareholders, so easily in the management of thecompany caused board seats for the majority of big shareholders occupy largeshareholder a person said to calculate case, so the large shareholders infringe theinterests of small shareholders. It is easy to occur. Once the legitimate interests ofsmall shareholders, not to the full and effective protection, foundation will companysustainable and stable development of the loss, thus protecting the interests of smallshareholders in listing Corporation in China the problem is very prominent andimportant.In China, the introduction of independent director in order to achieve the purposeof listing Corporation governance system, shows the importance of self-evident,independent directors in the company involved but, although the company law towrite it, but there is no specific provision, but the legislation to establish the system ofauthorized by the State Council, the State Council has issued but not, make thedirectors may not. Therefore, our country should establish a adapt to the corporategovernance structure of our country’s legal system of independent director, and in thelevel of laws and regulations on the functions and powers of independent directors,duties, personnel, the number of independent directors, organization andcompensation arrangements and other conditions to define constraints, to guaranteethe independent directors to perform its functions.Establish and improve the modern enterprise system is an important link inrelation to our country socialist market economy healthy development. To improvethe legal status of independent directors in China helps to establish and improve themodern enterprise system, accelerate the pace of integration into the world economy,improve enterprise competitiveness in the world and our country the right to speak. Therefore, perfecting the independent director of our legal status is very necessary.