Author(s)

Yixin Li, Huiyue Xu

Corresponding Author

Huiyue Xu

ABSTRACT

Recently, the case of financial fraud by Kangmei Pharmaceuticals has triggered dramatic changes in independent directors of Chinese listed companies and set off a wave of departures of independent directors, thus causing us to think about the role of independent directors in the Bao Wan dispute in 2016. This article reviews the Bao-Wan dispute and analyses various aspects, including a comparison of the basic personal profiles of independent directors and the current development status of independent directors in China, to reveal the main existing problems of independent directors in China and put forward constructive suggestions. As an important part of corporate governance, independent directors should perform their duties independently and impartially, and effectively shoulder the obligation to supervise corporate governance.

KEYWORDS

Independent directorship, Kangmei Pharmaceuticals, The dispute between Baoneng and Vanke