The Role of Independent Directors in Ensuring Good Corporate Governance
DOI:
https://doi.org/10.54097/fbem.v12i1.13618Keywords:
Independent Directors, Corporate Governance, Independence, Supervision.Abstract
For a long time, independent directors have been playing an important supervisory role in the operation and management of the company, protecting the interests of the owners of the enterprise and maintaining the balance of interests between the management of the company and the shareholders. The research in this paper aims to explore the positive role and problems of independent directors in good corporate governance, such as the positive role of independent directors in constraining and supervising directors, protecting the interests of small and medium-sized shareholders, and some problems such as the independence of independent directors being questioned. Through the establishment of some British committees, the independent directors have conducted in-depth studies to verify the problems of independent directors, published some insightful reports and comments, and put forward some suggestions for improvement. These debates have affirmed the supervisory function played by independent directors on the one hand, and pointed out the existing problems on the other, but it is undeniable that the existence of these problems can not erase the positive role played by independent directors in good corporate governance and their developmental future. Therefore, continuous improvement of independent directors to highlight their advantages in good corporate governance is the direction for independent directors to move forward in the new era.
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