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Difference between director & managing director

JD ( Business) (352 Points)

16 March 2015

Dear All , Can you please differenciate the authority between Director & Managing Director?

Thanks in advance

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3 Replies

CA Rajat Bajaj (Job) (1042 Points)
Replied 16 March 2015

managing director or manager is highest authority of company, and post is only one either manager or MD, while directors are lower to MD or Manager, and are more then 2/3 in company.

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Arpit Shah (Accountant) (21438 Points)
Replied 16 March 2015

Managing Director means a person who, by virtue of an agreement with the company or of a resolution passed by the company in a 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 could not otherwise be exercisable by him and includes a director occupying the position of a managing director, by whatever name called. The power merely to do administrative acts of a routine nature, when so authorised by the Board such as the power to affix the common seal of the company on any document or to draw and endorse any cheque on the account of the company in any bank or to draw and endorse any negotiable instrument or to sign any share certificate or to direct registration of share transfers will not be deemed to be included within substantial powers of management. The managing director must exercise his powers subject to the superintendence, control and direction of the Board.

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