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영어

The government of the People's Republic of China introduced the outside director system of the U.S.A. in August 2001 in order to protect interests of minority shareholders and to improve corporate governance. It will take some time that the outside director system of the U.S.A. is taken root in the corporate culture of China and becomes effective. Moreover, in order for the
outside director system to be really effective, the roles and responsibilities of independent directors should be defined and rational procedures of electing independent directors are set up. The effectiveness of the outside director system may be promoted by other various factors affecting corporate governance including, for example, improvement of ownership structure. Therefore, it is still early to say whether the outside director system of China is effective or not.