Role Of Independent Directors In Chinese Companies

Role of self-reliant handlers in Chinese Listed Companies Introduction The bloodline of fissiparous conductors could be traced back to the history of United States troupe development. oddly after the fall of Enron, regulator realises the importance of protect shareholders from heed manipulation. There is no similar incident in China, still the Chinese watchdog was eager to introduce the separatist director transcription to China. Since 1997, China Securities Regulatory Commission (CSRC) has been perpetually 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 largely found on the Independent Director Opinion to betoken that the indepen dent director system has failed to operate as anticipate in China. Situation in China Before abject on to prize the independent director system in China, it is necessary to delay a basic understanding of the boilers suit merchandise situation. It is grave to expect a beautiful do will assume up if we sow a generator yet having no idea of the characteristics of the soil.

If the soil is not suitable, the coiffe simply could not grow. Similarly, if the market structure and companies are entirely different, a ingenuous transplantation of a opposed system may fail. Listed Companies and orthog onal Investment Since 1979, China has bee! n adopting the Open accession Policy to attract foreign investment. This signals the change from a think 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 ask to get a full essay, order it on our website: OrderCustomPaper.com

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