Independent Director System In China

The word independent director often emerges in the newspapers and articles after China Securities Regulatory Commission issues the regulations of listed companies' independent director system. As a new system many incidents about the independent director happened one by one. This makes it be a focus that whether the independent director system should go on and if it goes on how will we perfect it. The dissertation is about this topic.Firstly the dissertation demonstrates the impendent director system has its rationality. The function of the independent director is similar to the function of the board.of supervisor This make the independent director system very embarrassed. As a director the independent director has the right of making decisions. But supervisors have no. This right could avoid the damage. But supervisors only could stop the damages after these have happened. This dissertation think we should abolish the supervisors system and keep the independent director system.Though the impendent director system has its advantages this system has many regulations need to perfect. This becauses it is too young. The dissertation points out disadvantages of the independent director system. Then through these disadvantages the dissertation put forward an idea that we should set up an independent director institute that manage all the affairs pf the independent director.And the dissertation think the independent director system is one part of the modes for the corporation governance structure. The elements that influence the corporation's operation are changeable. Many elements have their effects. It is not realistic that the independent director system solves all the questions.