Independence Of Independent Directors Of Listed Companies

In 2001, China formally issued "on the establishment of an independent director system in listed companies guidance", then, our country has been an independent director system. The purpose of this opinion is that for the relevant major shareholders of listed companies as well as to give more control and supervision of the management, make the company structure more reasonable, to protect the existing interests of the company, the interests of minority shareholders of the company better protected. Independent directors of listed companies that are not in posts other outside directors, and the appointment of its listed company and its major shareholders do not exist may impede their independent and objective judgment relations director. The main duties of independent directors to use its independent position in the office of a listed company, to play its internal oversight functions, eliminating the "internal controls" and, to improve the corporate governance structure, so that the direction of the company toward standardization of operation, to achieve sustainable development strategy. With respect to the independent directors of the most fundamental and most crucial is the core characteristic is undoubtedly independence. If independence once they leave, then the independent directors will be difficult to fulfill the corresponding responsibilities, functions and value of the system not to mention achieved. For example, when ownership structure is irrational, the appointment of independent directors often come from large shareholders or the management nominees, in fact, the employment relationship is there. Therefore, the exercise of the powers of the independent directors is difficult to be independent, it is difficult to achieve the establishment of the independent directors of listed companies was the original intention of the system, the interests of all shareholders can not be protected, especially the interests of the company and minority shareholders.The independence of the current situation of independent directors system operation exposed by current development of well-known scholars to research and study of independent directors, the independence as a starting point, the connotation and theoretical depth analysis of independent director independence using Logistic regression method, discuss the impact of the factors listed company operating conditions, operating risks for the independence of the independent directors and overcome, and provides a comprehensive understanding of the functions of the independent directors of advice, reconstruction of independent directors to perform their duties assigned responsibilities, improve Independent directors’ remuneration incentives and improve the qualifications of the independent directors of the assessment mechanism to ensure their independence some suggestions...