Directors role
soumya mandala (accountant) (69 Points)
03 April 2016
hey. I want to know distinction between role of a MD, manager, CEO & WTD under CA Act 2013.
soumya mandala (accountant) (69 Points)
03 April 2016
Megha Choudhary
(Management Trainee)
(541 Points)
Replied 04 April 2016
A MD has exclusive overall rights to manage the company’s business.
A MD and Manager can not be appointed simultaneously in a Company.
A WTD may be appointed with a MD or manager
A WTD, being whole time employee can not be WTD in more than one company.
A MD can be MD of More than one company
When talking of the differences, a Managing Director is responsible for the day-to-day business of a company. On the other hand, a Chief Executive Officer has no responsibility for the day-to-day affairs of a firm.
The MD will be a member of the Board of Directors, and is also head of the management of the company.
The CEO has the responsibility to facilitate business, and should also have a strategic vision to align the company, both internally and externally. A CEO has to guide the employees and the executive officers.
Managing Directors are always held responsible for any action of the company. Moreover, the MD is accountable to the share holders. On the other hand, the Chief Executive Officer does not have to shoulder these responsibilities.
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