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Research On The Countermeasures Of Lack Of Independence Of Independent Directors Of Listed Companies In China

Posted on:2021-05-13Degree:MasterType:Thesis
Country:ChinaCandidate:L W GuoFull Text:PDF
GTID:2416330629980396Subject:Law
Abstract/Summary:PDF Full Text Request
There are two main reasons for the lack of independence of independent directors in China's listed companies.The external reasons include six aspects: the lack of independence of the board of directors based on the current situation of highly centralized ownership;The process of nomination and election impairs the independence of independent directors;the poor performance environment of the independent directors of listed companies in China;The current compensation system affects the independence of independent directors;Lack of independent director evaluation system.The lack of an evaluation system means that conscientious service cannot be effectively converted into market reputation,thus reducing the enthusiasm of independent directors to perform their duties.Their own reasons result in lack of independence:lack of initiative,independent directors are too "sensible";Working for a company that is out of place,causing inconvenient exercise of the right;Too many companies make it is difficult to arrange the time properly.There are some solutions to the lack of independence of independent directors caused by external factors:Increasing the proportion of independent directors on the board of directors.Establish a social independent self-discipline organization--independent directors committee,transfer the nomination right of independent directors to the independent directors committee;Improve the independent director election and evaluation system based on block chain technology;In terms of the compensation model,Ensure the financial independence of the independent directors by using the independent directors committee.Methods to solve the lack of independence caused by independent directors' own factors:In view of the current situation of the dispersion of listed companies in China,the regional independent directors committee is further established on the basis of the independent directors committee to ensure the independence of independent directors through their local representation;According to the Individual differences of the independent directors in China,the maximum number of companies in which they work should limited in steps.It has been 18 years since China's independent director system was issued.Although the independent director system is constantly improving,there are still many disputes.Ambitious institutions also require elaborate supporting systems.The independent director system of listed companies in China needs constant innovation and improvement to develop healthily and efficiently.Only in this way can we make contributions to the high-quality achievement of China's socialist economy.
Keywords/Search Tags:Listed companies, Independent director, Lack of independence, External factors, Self-reason
PDF Full Text Request
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