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The role of independent directors in ensuring good corporate governance

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DOI: 10.23977/law.2023.021107 | Downloads: 7 | Views: 222

Author(s)

Ziyi Wang 1

Affiliation(s)

1 University of Leeds, Leeds, West Yorkshire, LS2 9JT, United Kingdom

Corresponding Author

Ziyi Wang

ABSTRACT

Independent directors are considered an important role in corporate governance under the unitary model. The independence, professionalism and supervisory role of independent directors can provide professional advice to the company, which is conducive to preventing the abuse of power by the management, safeguarding the interests of shareholders and ensuring the compliant operation of the company. However, independent directors are not 100% effective. The fact that independent directors are not involved in the day-to-day operations of the company means that they do not have access to accurate and effective information. In practice, the influence of independent directors is limited and their impartiality cannot be guaranteed.

KEYWORDS

Independent Directors; Corporate Governance; Oversight

CITE THIS PAPER

Ziyi Wang, The role of independent directors in ensuring good corporate governance. Science of Law Journal (2023) Vol. 2: 40-47. DOI: http://dx.doi.org/DOI: 10.23977/law.2023.021107.

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