1) Shareholder activists argue that such perks unduly enrich outside directors, encourage them to stay too long and endanger their independence.

2) Cultural Perspective of Outside Director System Transplantation.

3) Outside director system improved the independent role of outside director and the state-owned stockholding company's govern structure.

4) The outside director system most early appears in US,[http:///outside director.html] 1940 US "Investment company Law" has made the stipulation regarding this.

5) It is significant to implement the outside director system, since it can prevent controlling shareholders from hurting the interests of small shareholders.

6) Accordingly, the gradual introduction of outside director and working staff director innovate the constitution of the directors board.

7) Nynex, Anheuser-Busch and Sun decided last month to propose terminating pension plans for their outside directors.

8) The history and development of the system are providing material theories and experience to establish outside director system in wholly state-owned companies in China.

9) Hence, where CEOs have significant shareholdings in enterprises, their ownership incentives may likewise lessen the need for outside director monitoring.

10) Sequoia Capital would seem to be the lead investor, given that Sequoia partner Alfred Lin (former CFO/COO at Zappos) is listed as the company's only outside director.

11) The paper consists of four parts: the first part states the basic theory of firstly explain the conceptions about inside director, outside director and independent director.

12) The state-owned stockholding company must establish and improve BOD (the board of directors) to adapt the market economy, therefore the outside director system becomes the core of the reform.