A Study On The Balance Of Power Sand Responsibilities Of Independent Directors In China

The verdict in the fraud case of Kangmei Pharmaceuticals is significant in the history of the independent director system in China.Following the announcement of the verdict in the case,independent directors have taken steps to resign in response.These moves reflect the contradiction between the current independent directors and the existing system in China,i.e.the imbalance between the powers and responsibilities of independent directors.To address the issue of imbalance in the powers and responsibilities of independent directors in China,we need to analyse the case of the fraud case of Kangmei Pharmaceuticals as an example to present how the powers and responsibilities of independent directors were imbalanced in this case,and then explore the causes of the "resignation wave" of independent directors and their being caught in the whirlpool of responsibilities.Secondly,the fraud case of Kangmei Pharmaceuticals has led to extensive discussions on the duties of independent directors,the core issues of which are the failure of independent directors to obtain timely information and their joint and several liability.While holding independent directors accountable is currently the focus of social attention,at the same time,attention needs to be paid to issues such as the rationing of the rights and responsibilities of independent directors,the matching of risks and benefits,and the imbalance of rights and responsibilities.After all,a clear understanding of the manifestations of the imbalance between the rights and responsibilities of independent directors can lay the foundation for future research to identify the causes of the problem and build a sound system.Although the system requires independent directors to play an important role,due to a number of factors,independent directors have not achieved the desired effect and have instead become a formality in name only.The growing imbalance between the rights and responsibilities of independent directors in China necessitates further research into the causes of this imbalance,which is a key step in addressing the imbalance of power and responsibility.Once the specific manifestations and causes of the imbalance in the rights and responsibilities of independent directors in China are better understood,useful suggestions can be made to address the issue,allowing independent directors to play a greater role in corporate governance and creating a positive situation with a balanced allocation of rights and responsibilities.A good system can more effectively discipline and motivate independent directors,and regulate the process of independent directors’ performance,optimise the protection of independent directors’ performance and make independent directors more clear about their obligation to be diligent and responsible.