managing director

Subject to the articles of association, the powers of a company are exercised by the board of directors of the company. The board has power to delegate its powers to manage the company’s affairs in any way and on such terms as it see fit. In this way, the board may delegate all or some of its powers to a single person acting in the role of a managing director.

Appointments of this kind are usually made by the company to allow decisions to be made in the ordinary course of business by a single executive, without the need for board meetings. In the absence of an appointed chief executive offer, a managing director is likely to be the most executive in a company, and take on the responsibilities to enter into contracts on behalf of the company, develop operating procedures, fix strategic objectives, assess financial performance of the company, and monitor and coordinate activities of senior management.

Usage: The managing director was appointed by the board of directors to conduct the business of the company.

Related Words: company; directors.