The Necessity and Difficulty to Set up Independent Director System in China

The paper analyzes the present situation and implementation difficulties of the independent director system in China, pointing out that it is necessary to set up such a system. It is held that the independent director system to be unfolded and popularized soon is confronted with the problems of personnel shortage and how to retain the independence of the system. Whether or not to tackle the problems of this category in a good way is the key to the successful operation of the independent director system. Because of the present situation of the one unique strongest share of the listed companies in China, the expectation of the people of all circles in China toward the director system cannot be too high, which explains the limitation of the independent director system.