Factors Affecting Institutional Functioning Of The Independent Directors Of Listed Companies

On August 21st, 2001, Chinese Securities Regulatory Commission (CSRC) issued the Instruction about Setting up Independent Director Institute in the Listed Corporation, which indicates that our country began to set up independent director system in the listed corporations. So far, our country has introduced and implemented this system for about 3 years. But there are still a lot of questions about the Independent Director Institute in our country. Whether the function' s position of Independent Director Institute is rational? Whether the Independent Director Institute has improved the management situation of the enterprises? What factors will affect the effectiveness of the Independent Director Institute? All the questions above are for us to answer. The study achievements on these questions will provide more ideas to improve this institute. According to these questions, this article is separated into four parts:In the first part, the article simply introduces the meaning, the traits and the development process of the Independent Director Institute. Then, it induces the positive study results of the Independent Director Institute in foreign countries. According to the things above and the present situation in China, the article concludes the weaknesses of the positive study now in China on the Independent Director Institute.In the second part, after simply expounding the necessity of the Independent Director Institute, the article analyses primarily the functional position of the Independent Director...