The Dilemmas of Independent Directors in China : An Empirical and Comparative Study

As independent directors have formed an integral part of the Chinese corporate governance model for more than a decade, it is now timely and important to examine their performance of their monitoring functions. As a result of studying the administrative sanctions imposed by the CSRC on independent directors, this article can offer several important empirical findings. Based on these discoveries, this article analyses the general fiduciary duties and specific monitoring functions of independent directors from comparative perspectives. It also explores the ‘independence' of independent directors and examines their responsibilities in light of their reliance on professional third parties' reports. This article argues that similar to their Western counterparts, independent directors in China are facing intrinsic dilemmas in the process of performing their monitoring functions