A system has been set up in China which provides for independent directors of listedcompanies. Whether these independent directors could play an effective role has, however,always been a matter for dispute. The recent...A system has been set up in China which provides for independent directors of listedcompanies. Whether these independent directors could play an effective role has, however,always been a matter for dispute. The recent case of Leshan Power shows that under thelegal framework and share structure which currently exists in China, there is very narrowscope for independent directors to carry out their function. After discussing the main obstaclesto implementation of independent directorship of Chinas listed companies, the authorpoints out several measures that must be taken in order to enhance the effectiveness ofboards of directors. Finally this paper concludes that without the necessary conditions forindependent directors to actually have a functioning role to play, invitation of independentdirectors by listed companies will be a matter of form only.展开更多
文摘A system has been set up in China which provides for independent directors of listedcompanies. Whether these independent directors could play an effective role has, however,always been a matter for dispute. The recent case of Leshan Power shows that under thelegal framework and share structure which currently exists in China, there is very narrowscope for independent directors to carry out their function. After discussing the main obstaclesto implementation of independent directorship of Chinas listed companies, the authorpoints out several measures that must be taken in order to enhance the effectiveness ofboards of directors. Finally this paper concludes that without the necessary conditions forindependent directors to actually have a functioning role to play, invitation of independentdirectors by listed companies will be a matter of form only.
