A system has been set up in China which provides for independent directors of listed companies. 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 the legal 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 obstacles to implementation of independent directorship of China's listed companies, the authorpoints out several measures that must be taken in order to enhance the effectiveness of boards of directors. Finally this paper concludes that without the necessary conditions forindependent directors to actually have a functioning role to play, invitation of independent directors by listed companies will be a matter of form only.
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