Independent Director System In Listed Companies

Independent director, which is also called outside independent director or outside non-executive director, refers to the directors of a board who have none of contact relationships with their company other than their board director's status. The implement of independent system will not only improve the corporate governance of a listed company, but also protect the interests of shareholders. Also the participation of independent directors in the board decision-making process will increase the democracy and accuracy the final decisions. On August 21^st, China Security Inspection Commission formally carried out the implement of independent director system in Chinese listed companies in order to improve the corporate governance and the business standards of Chinese listed companies. Since then, the independent director system has developed rapidly in China. However, the independent director system is still a new comer in Chinese security markets, which has avoidably met some blocks on its way and hindered its further development in China.From the angle of system construction, this essay deeply analyzed the problems which happened in the process of the implement of independent director system and tried to find out a better system arrangement of China. This essay is composed of four parts: Part One is an exordium, which introduced the history and the current situation of independent director system in China and proved the incapability of the system in China. Part Two introduced the basic theory of the independent director system, which is to get readers ready for the following parts of this essay. Part three is the main body of the total content, which listed the main problems which have appeared in the implement of the system, and analyzed the deep reason of them. The last part gave out some policy advices on the problems mentioned in Part Three.After all, this essay is based both on theories and practices. Firstly, from the...