Reasons For Lack Of Independence Of Independent Directors Of Listed Companies And Countermeasures In China

Since the reform and opening up, the development of China’s capital market is very quickly since then. But during the process, there have been many problems of listed companies; these problems are caused by the lack of a perfect and powerful supervision system. Therefore, in order to solve the problems appeared in the listed company governance, our country began introducing the independent director system in the 90 s. From the perspective of independent director’s independence, this paper discuss the development and the basic framework of the independent director system in our country, and then make analysis of situation of independent directors’ independence, pointing out that flaws in independent director system is the lack of independence, finding factors through the analysis of the data, and proposing reasonable and effective recommendations to protect the independence of independent directors.This paper will be divided into six parts: The first chapter is the introduction. This chapter first introduces the background of the selected topic, and points out that guarantee the independence of the independent director for the governance of listed companies is of great significance. Then this chapter makes a summarized on the independent director system at home and abroad, and has carried on the overall evaluation. The second chapter first expounds the concept and characteristics of independent directors, and recognizes the independent directors based on the concept and characteristics, and then introduces the definition of independent director’s independence from four aspects, and expounded about the relevant theories of independent director’s independence, finally points out the necessity of the independence of independent directors. The third chapter summarizes in the protection of the independent directors’ independence in foreign institutional arrangements and the enlightenment to our country, and provides experience to improve the independence of independent directors. The fourth chapter makes analysis of the independent director system in China and existing problems of the framework from the perspective of safeguard independent director independence. It first points out the origin and development of the independent director system in our country, and then elaborates on the basic framework of the independent director system in China, and connecting with the present situation of independent director’s independence analysis, points out the defects of the system of independent directors in China mainly manifested in the lack of independence. Fifth chapter expounds the negative influence of lack of independence and the reason. The sixth chapter is based on the situation of our country; it puts forward the protection countermeasures of independent director’s independence of listed companies in China.