China to require A-share firms to appoint independent directors

SHANGHAI (AFX-ASIA) - China will introduce rules requiring A-share companies to appoint independent directors, Laura Cha, vice-chairman of the China Securities Regulatory Commission, said in a South China Morning Post report.	    Cha said this is one of many steps the government is taking to improve corporate governance of listed firms and protect the interests of shareholders.	    "There is insufficient understanding among the boards of the listed companies of the interests of minority shareholders and a lack of accountability towards them," she was quoted as saying by the SCMP. 	    According to the China Daily, Cha said the CSRC is working on a set of principles and standards of corporate governance, adding that these will "mandate transparency and focus on the behaviour and accountability of the board and the management of the listed companies."	    The standards are also to ensure the segregation of interests of the controlling shareholder and those of the listed companies, she said.	    She said the CSRC will require companies to explain the differences between their corporate governance and the principles and standards set by the CSRC. 

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