About Registered Independent Director

The qualification of Registered Independent Director ensures the legal status of independent director, after registration, the independent director will work under a double-monitor system by monitor department and self-discipline department. This system is ensuring the independence, ability and duty restriction of independent director. It can improve the professional of independent director, make sure that independent director can play their role effectively.

The advantages of Registered Independent director:

  • To ensure the practice ability of an independent director. The practice ability is the base of independent director system, this is the premise of independent director play their role. The association will through registration to ensure the practice ability of independent director. It is an examination system which covers the knowledge of economy, law and finance. Therefore, all independent directors can confirm, separate facts and make comments by their practice ability.
  • To ensure the independence of independent director. Independence of independent director is the foundation of independent director system to play its role. To ensure the independence of independent director, the candidate cannot select by the board of directors or the general meeting of stockholders. Through the registration system, listed companies can report their demand of independent director and professional requirement to the ARID, the decision of independent director candidates will follow by the self-discipline association. Those decisions can maximum the objective and notarization of independent directors.
  • To ensure the independence, encouragement and responsibility of independent director. Independent director is a kind of human resource capital, a suitable salary system is need to carry out for them, but it will occur a dilemma situation if the salary system decided by the board of directors. Through the registration system, the salary of independent director will depend on work performance, workload, company size and risk of responsibility and decided by the Salary Council of the association. It will paid by the listed company follow the ratio and ensure the independence and encouragement system of independent director; and through responsibility research, it will build up a practice restriction system for independent director, then improve the reputation of an independent director. The qualification of independent director ensures the independence, practice performance and encouragement system.
About ARID
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