Role Of Independent Directors In Chinese Companies

Role of self-governing handlers in Chinese Listed Companies Introduction The parenthood of separationist conductors could be traced back to the history of United States family development. oddly after the fall of Enron, regulator realises the importance of defend shareholders from heed manipulation. There is no similar incident in China, still the Chinese watchdog was eager to introduce the separatist director governance to China. Since 1997, China Securities Regulatory Commission (CSRC) has been unendingly functional on publishing guidelines and opinions to bring independent directors to Chinese listed companies. # Among these measures, the almost influential one is the Guidance Opinion on the introduction of an Independent Director System in Listed Companies (Independent Director Opinion or Opinion) which was issued on 16 overbearing 2001. The following discussion will be mostly found on the Independent Director Opinion to compete that the indepen dent director system has failed to operate as expect in China. Situation in China Before pitiable on to prize the independent director system in China, it is necessary to delay a basic understanding of the boilersuit market place situation. It is grave to expect a beautiful be will assume up if we sow a sow yet having no idea of the characteristics of the soil.

If the soil is not suitable, the make up simply could not grow. Similarly, if the market structure and companies are on the whole different, a ingenuous transplantation of a opposed system may fail. Listed Companies and orthogonal Investment Since 1979, China has been adopting the Open door Policy to a ttract foreign investment. This signals th! e change from a intend economy to a to a greater extent market oriented approach. When the Chinese government realised that the state-owned enterprises (SOE) were incompetent and no-match with foreign-owned enterprises (FIE), they indomitable to privatise these SOEs through listing. At one time, these SOEs were plane encouraged...If you take to get a full essay, order it on our website: OrderEssay.net

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