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What is a manging director?

Updated: 9/20/2023
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12y ago

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He (she) is the senior person in a company, apart from the Chairman - though he can be both.

In the UK, you cannot form a company, however small, unless there is a Managing Director and a Company Secretary, and these two must not be the same person.

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Difference between Managing director and Whole Time Director?

Managing Director means a director who by virtue of an agreement with the company or of a resolution passed by the company in general meeting or by its Board of Directors or by virtue of its memorandum or articles of association is entrusted with substantial powers of management which would not otherwise be exercisable by him. It includes a director occupying the position of managing director by whatever name called. Whole time director includes a director in the whole time employment of the company. A person who does not devote substantially the whole of his time to the company is not a whole time director. A whole time director is virtually a managing director though not so designated. A director in charge is also in the same position as a managing director. It has been held that a Managing director is a part of the company's Board of directors and not a servant of the company.


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