Role Of Independent Directors In Chinese Companies

Role of individual handlers in Chinese Listed Companies Introduction The decline of independent conductors could be traced back to the history of United States union 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 clay to China. Since 1997, China Securities Regulatory Commission (CSRC) has been always 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 generally found on the Independent Director Opinion to reason out that the independent director system has failed to operate as anticipate in China. Situation in China Before miserable on to prize the independent director system in China, it is necessary to delay a basic understanding of the boilersuit trade situation. It is grave to expect a beautiful whole caboodle will assume up if we sow a semen yet having no idea of the characteristics of the soil.

If the soil is not suitable, the countersink simply could not grow. Similarly, if the market structure and companies are exclusively different, a ingenuous transplantation of a opposed system may fail. Listed Companies and orthogonal Investment Since 1979, China has been ad! opting the Open doorstep Policy to attract foreign investment. This signals the 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 unconquerable to privatise these SOEs through listing. At one time, these SOEs were plane encouraged...If you privation to get a full essay, order it on our website: OrderCustomPaper.com

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