97 percent of China's listed companies gave independent directors a high mark for their work, according to a recent survey by the China Insurance Regulatory Commission (CIRC).

At the end of 2005, China's 1,377 listed companies had 4,640 independent directors, who occupied one third or more of total board seats in 93 percent of the companies, CIRC statistics showed.

However, there are always a few rotten apples. The Shanghai and Shenzhen stock exchanges have accused 107 independent directors of failing to carry out their duties properly, according to XMNEXT.com, a website managed by Shanghai-based Xinmin Evening News.

Luo Peixin, a professor with the East China University of Politics and Law, said that, in some cases, directors did not devote the time necessary to discharge their functions properly, did not have adequate professional knowledge or their rights and responsibilities were not clearly defined.

China introduced the independent director system in 2001.

Independent directors are considered to play a uniquely impartial role in guiding and supervising the corporate business of joint-stock companies, as they have no shares or other financial interests in the company.

Source: Xinhua