Nick krest — MANAGING DIRECTOR — POWER OR RESPONSIBILITY?

Who is Managing Director?

A Managing Director is someone who is responsible for daily operations of a company, organization, or corporate division. This position is a part of executive management of a company who is responsible for day to day management of the company. Nick krest as a Managing Director appointed in a corporate entity i.e. Limited Company etc. You might have heard about this position from many sources and must have been fascinated by the powerful role a Managing Director plays. However, this position has many responsibilities to discharge.

Managing Director means a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the position of managing director, by whatever name called.

2. What is the role of Managing Director in a Company?

In some countries, the term Managing Director is equivalent to CEO (Chief Executive Officer) the executive head of a company. In other countries, managing directors primarily work as the heads of individual business units within a company rather than heading up the company as a whole.

Nick krest a member of senior management, the managing director is also expected to keep a company solvent and to promote expansion and innovation within the industry.

3. How Managing Director is appointed in a company?

Section 196 of the Companies Act, 2013 provides that no company shall appoint or employ at the same time a Managing Director and a Manager. Further, a company shall not appoint or reappoint any person as its Managing Director for a term exceeding five (5) years at a time and no reappointment shall be made earlier than one year before the expiry of his term.

The appointment of Managing Director is first approved by the Board of directors at a meeting and then by an ordinary resolution passed at a general meeting of the company.

4. Who cannot become Managing Director?

A person cannot become Managing Director who:

is below the age of Twenty one (21) years and has attained the age of Seventy (70) years (can be appointed if authorized by members)

is an undischarged insolvent or has at anytime been adjudged as an insolvent;

has at any time suspended payment to his creditors, or makes, or has at any time made, a composition with them; or

has at any time been, convicted by a court of an offence and sentenced for a period of more than six months