The Practice And Perfection Of Independent Director System In China

Corporate governance has been a common concern on the listed companies in our country, even in the world. There are many defects in corporate governance of listed companies in our country. In order to enhance corporate governance performance of listed companies, China Securities Regulatory Commission adopted the Independent Director System. Independent directors play a crucial role in providing a balanced and independent view to the boards of listed companies. Their contribution to the practice of good corporate governance stems from their independence and objectivity in matters relating to the company's strategies, information disclosure, fairness in reporting company results and addressing potential conflicts of interest between stakeholders. It is the topic of my thesis that how the Independent Directors System works in our country and what we should do to make it perfect.There are three chapters in my thesis. In Chapter One, I gave a detailed introduction about the Independent Directors System-the process it produced and why it produced; several similar concepts and their meanings; its development trend, its function, etc. In Chapter Two, I explained that it is indispensable to adopt the Independent Directors System; and I pointed out that there were many problems of the Independent Directors System in our country; In Chapter Three, I proposed some advice on how to make this system perfect. This thesis is devoted to the roles and functions of Independent Directors in corporate governance. It also gave some valuable advice on other aspects. I hope this thesis can do some benefit on the Independent Directors System, on the corporate governance.In all, it is a new system in our country, and we should realize that there are many specific aspects in our country, which are different from United States. There are many disputes about this system, and it needs long enough time for us to know the system well. It is hard for the system to produce instant effect and it is a long way for this system to be mature.