Study Of The Independent Director System Of Our Country's Listed Company

For the historical reason, the phenomenon of "one share is big alone" and"Inside People Control" in Chinese corporate governance structure have great damaged the companies' performance. Accompany to these phenomena, the situation that supervisory right of the Supervisory Board has been decreasing hammed the inside supervise to corporations and the benefit of small shareholders are often hurt by the managers and big shareholders. In order to settle the problems above, the government introduced the Independent Directors System to reform the listed companies' corporate governance structure.With the development of IDS in China for the recent years, this system has spread almost all the listed companies. The independent directors have good effect on company supervision, strengthening responsibility of the director board and protecting the small shareholders. But, this system is yet young in China and its operational mechanism is also ambiguous. Some independent directors are often called "Vase directors" or "Gift director" for their inept supervisory competency.In this article, the author will analyze the establishing, developing and its executing environments of this system, and combining with the actual situations of our country, point out some suggestions on its improving in China. And the author hopes these suggestions may enlighten the Chinese company in improving corporate governance and setting up modern corporate system. This article mainly includes five parts:The first part includes the first two chapters, which briefly introduced the background of the topic, the significance of the basic structure and the process of the emergence and development of the independent directors.In the second part, the author mainly introduces the empirical study of the independent director system, and reached an "independent director system is still not perfect. Need to further develop and improve "conclusion.The third part includes chapter IV and V, including the main proof of the necessity of introducing the independent directors. And through the analysis of the independent directors system and the existing corporate governance structure of our country, pointing out the deficiencies of the independent directors system.The fourth part based on the chapters of the above, the author gives some suggestions on how to improve our country's independent directors system. And the author hopes these suggestions may enlighten the Chinese company in improving corporate governance and setting up modern corporate system.The fifth part is the conclusion and the forecast, which made a clear and concise summary of this article, and pointed out the innovation and deficiency of this article, and proposed the forecast of the future research.