On The Independent Director System In China Robustness Introduced

Corporate Governance is now in the spotlight of global attention. Among all related mechanisms, great expectation is placed on the young Independent Director System. Currently, China is also busy with the introduction of this system.The thesis, composed of four parts, makes a systematic study of the Independent Director System.The first part makes a general survey of the Independent Director System, which includes: definition, historic background and the course of the development. This part also elaborates on "the Issue of Independence" of Independent Director.The second part is about the structure and the function mechanism of the Independent Director System. The analysis is developed from five aspects: qualification, election, tenure, number & proportion, compensation & incentives. The focus of this part is on the special committees of the Board of Directors. The third part concerns the advantages and disadvantages of the Independent Director System. With enough notice given to the disadvantages, this part puts forward the gist of the thesis: to hold a steady approach is a sensible choice for China in its introduction of the Independent Director System. The last part focuses on the introduction of the Independent Director System in China. It studies the necessity of the introduction and reviews present situation of the system in China. The part then reflects on those problems exposed in reality and elaborates on coordination of the functions of the Independent Director and the Supervisory Board. At the end of this part, some suggestion is advanced for the improvement of the Independent Director System in China. On the basis of the prior four parts, as conclusion, a steady approach towards the introduction of the Independent Director System is restated and emphasized. Moreover, from a broader perspective, issues like the balance between supervision and efficiency and the general improvement of the corporation system through perfecting the external market environment are briefly discussed.