The Improvement Of The Independent Director System Of Chinese Listed Companies

As the main part of corporate governance structure, the independent director has attackedacademia’s attention since it is introduced in China. But the independent director system is failedto play its function in corporate governance, its role has not been reflected. This article from theperspective of independent director’s independence, probes into the performance of ourindependent director’s independence missing, the specific reason for the lack of independence,put forward a concrete scheme which can improve the independent director’s independence.First of all, this article begins in independent director’s research background and researchsignificance,it focuses on the origin of the independent director and the current research progressof independent director’s defect. Through the case analysis, it found that the independent directorsystem in our country is not perfect, and the imperfect mainly manifested in the lack ofindependence. This article discusses the lack of independence in four aspects: the emergence ofvase director, false financial information, significant related transactions and the director firedphenomenon. It also deep probes into these problems. In order to solve above problems, thisarticle advises to establish a third party management organization which independent of thecompany management and stakeholders, to discusses how to improve the system of independentdirectors. Hope that through this independent third party legal person institution improvementscheme, it can enhance the independence of the independent directors, improve the efficiency ofthe independent directors work and enthusiasm, further improve and standardize the independentdirector system of our country.