Title: Role of Independent Director in Listed Companies
Abstract: In order to complete the corporate governance for listed companies in China and improve the quality of listed companies, the China Securities Regulatory Commission formulated the Guidelines for Introducing Independent Directors to the Board of Directors in Listed Companies. All listed companies are required to include at least two independent directors to their boards of directors. But now, most of independent directors just play the role of advisers. It is difficult to protect all shareholders'rights, particularly minority shareholders rights. This article proposes the role of the independent director in listed companies shall be adequately activated. Most importantly, by offering training course on the role and responsibilities of directors, the educational process will be able to develop a pool of candidates from which the listed companies could choose as independent directors. In addition, reinforce the transparency of independent director remuneration. At last it is to establish the independent director market in order to make the independent director play an active role,- to make managers accountable to shareholders and help managers accomplish the strategic aim of companies.
Publication Year: 2003
Publication Date: 2003-01-01
Language: en
Type: article
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