​KembaraXtra – Legal Terms – Managing Director


A managing director is a company director who has been delegated substantial management powers by the board of directors. The scope of those powers depends on the company’s constitution and internal arrangements.


Managing directors commonly oversee the daily operations of a company and act as its principal executive authority. They are usually empowered to make important commercial and administrative decisions.


In law, a managing director acts as an agent of the company. Because of this position, third parties dealing with the company may generally rely on the managing director’s apparent authority.


Although significant authority is delegated, the managing director remains accountable to the board and must act in accordance with company law duties and the company’s articles of association.