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In the United Kingdom, a managing director is the person responsible for the day-to-day running of a company or corporate division and reports to the board of directors. In the United States, that person is the CEO -- chief executive officer. Whichever title is used, the person in this role has broad duties and responsibilities.
General Company Operations
The managing director makes decisions on behalf of a company and acts in its best interests. This means he or she is liable in the event of a breach of law. The managing director is also expected to be always aware of the financial state of the company and is required to make decisions with this in mind. Beyond these duties, the managing director is a custodian of confidential information regarding the company and has a duty to prevent misuse of this information.
The managing director guides subordinate employees and is liable for any damage that may occur in the process of carrying out these duties. The managing director is also liable for any labor violations, unless there is a system or somebody else responsible for ensuring compliance. He provides a link between the employees and the board, and keeps both parties updated on each other’s interests. The hiring and developing of new employees is upon him.
The managing director keeps the board of directors updated on the company’s annual objectives and goals, and seeks its approval before implementation. He presents a budget proposal to the board which approves it and expects him to operate within its limits. The board of directors also receives from him reports on the company’s overall performance. He has a duty of ensuring the company avoids activities that may lead to insolvency.
It is the managing director’s duty to guide the company in developing new products or services and attracting customers with an objective of increasing profit. He is also obliged to develop business relationships with the company’s old customers while attracting new ones. The managing director oversees the development of strategy for promoting the company’s products. He is also responsible for managing any delivery schedules.