The "SSE Guidance on Filing and Training of Independent Directors of Listed Companies", formulated and published recently by the Shanghai Stock Exchange (SSE) to further improve the corporate governance and quality of listed companies, has been implemented since the publication day.
The Guidance, with 26 clauses in 4 sections, regulates on the filing procedures for candidates of independent directors as well as the qualifications and training of independent directors.
According to the Guidance, if a listed company's directorate, board of supervisors or shareholders with the right to nominate independent directors plans to nominate the candidates of independent directors, the listed company should fill in the resumes of the candidates on the website of the SSE before submitting the written documents of relevant materials of the candidates within 2 trading days from the day of nominating the candidates. The SSE will examine the qualifications of the candidates in line with relevant regulations within 5 trading days after receiving the materials filed with it.
The Guidance requires that candidates of independent directors should possess a basic knowledge of how a listed company operates, get familiar with relevant laws, administrative regulations, department rules and other regulatory documents, have more than 5 years' experience in law, economy, finance, management or other fields that independent directors need to perform their duties, and obtain the certificates for qualifications of independent directors according to relevant regulations. Besides, they should be independent without any bad record. For any independent director who holds the position in a listed company for 6 years in a row, he or she can no longer hold the position in the listed company.
The Guidance also asks independent directors of listed companies to get qualifications before holding the position by attending training courses of at least 30 class hours. After holding the position, they should receive the follow-up training once every two years of at least 30 class hours.