What are the principal functions of the managing director?

The office of managing director is created the articles for purposes of internal management.

Under Article 107 of Table A directors may appoint one or more of their body to the office of managing director for such period and on such terms as they think fit and subject to terms of any particular agreement, the board may revoke such appointment.

A managing director has two functions and capacities, those of director and managing director. As managing director he is a party to a contract of employment or service with the company (Anderson V. James Sultherland(Peterhead) Ltd [1941])
 Subject to the articles the powers and duties of a managing director depend upon his contract of service with the company.
 The managing director is a full-time employee to whom some or all of the powers of management of the board are delegated.
Under Article 109 of Table A directors may entrust to and confer upon a managing director any of the powers exercisable them on such terms and conditions and subject to such restrictions as they may deem fit and either collaterally with or to the exclusion of their own powers and may withdraw, revoke after of vary all or any of such powers as was the case in Harold Holdsworth and Co V. Caddies.
A managing director may have implied power to enter into certain agreements on behalf
of the company even though there has been no express delegation of the power.

(Visited 11 times, 1 visits today)
Share this on:

Leave a Reply

Your email address will not be published. Required fields are marked *