Difference between chairman, Managing Director and CEO
This query is : Resolved
Chaitanyaa
(Querist)
16 July 2022
please guide on the hierarchy structure of Chairman, MD and CEO in a Company. Who is more powerful and what are their duties and powers?
CA R SEETHARAMAN
(Expert)
16 July 2022
MD stands for Managing Director, and CEO stands for Chief Executive Officer. Although these two terms can be confusing when it comes to one’s roles and responsibilities, there are distinctive differences between the two.
When discussing the differences, a Managing Director is responsible for the day-to-day business of a company while a Chief Executive Officer does not have huge 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 other major difference between the Chief Executive Officer and a Managing Director, is their responsibilities. 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.
A Managing Director is the leader of an organisation. She/he is the real motivational force for others, and she/he is a person who develops a corporate culture for an organisation. Since the MD is responsible for the day-to-day business of on organisation, she/he would be responsible for the overall management of an organisation. She/she is a person who has to bring in innovations and expansions.
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.
MD stands for Managing Director, and CEO stands for Chief Executive Officer. Although these two terms can be confusing when it comes to one’s roles and responsibilities, there are distinctive differences between the two.
When discussing the differences, a Managing Director is responsible for the day-to-day business of a company while a Chief Executive Officer does not have huge 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 other major difference between the Chief Executive Officer and a Managing Director, is their responsibilities. 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.
A Managing Director is the leader of an organisation. She/he is the real motivational force for others, and she/he is a person who develops a corporate culture for an organisation. Since the MD is responsible for the day-to-day business of on organisation, she/he would be responsible for the overall management of an organisation. She/she is a person who has to bring in innovations and expansions.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- EPF ECR NEW RULES Sep 17th 2026
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Issuing of delivery challan by seller of goods
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
