The Countermeasures Research Of Independent Director System Based On Medium And Small Investors’ Cognition

Through the study of relative literatures, this paper summarized the concepts, role features and functions of independent directors. At the same time, it did some researches on the generation, establishment and development of independent director system in China. This paper pointed out that the development process of independent director in China has its specific economic, social basis and special historical background. And it found that the essence and core of the independent director are to find a balance between the overall interests of the company and the maximization of the value to shareholders.Based on these research results, a further questionnaire survey about the relevant problems of independent directors in medium and small investors of listed companies has been carried out. It reveals a lot of problems which are listed as follow:First of all, the independent directors’ duties, the requirements of their duties, and the generation mechanism are not clearly recognized from the questionnaire survey. Moreover, the investors do not agree with the effectiveness and independence of the independent director systems. In addition, they slightly tend to continue keeping:the wait-and-see attitude on whether to adopt the independent director system. However, the medium and small investors think that the independence and effectiveness is the core problem of the independent director system. They hope to clear and advance the development of independent director system through the legal system. From the questionnaire survey, it is significant that the medium and small investors pay little attention to the independent directors and its system, which reminds us to pay more attention to the education and guidance on medium and small investors and general public.This paper puts forward the existing problems of independent director system through the analysis of questionnaire survey. It reflects the fact that though the value is worthy a positive affirmation, the independence and effectiveness is still the most significant problem in the development of independent director system. Finally, this paper further presents some countermeasures and suggestions in order to solve the existing problems of independent director system. It pointed out that the critical solution is to improve the construction of legal system, the protection of independence and the guarantee of professionalism.The conclusion of this paper shows that independent director system in China still has the value and significance regardless the existing problems and shortcomings at the present. That is to say, it is worthy to further bring out practice, adjustment and reform in this area.