Companies act 1956

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

05 April 2012 what is the difference between 'chairman and managing director' of the company?

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
Follow

05 April 2012 Managing director will always be a executive director but Chairman can be executive as well as non executive director.
The managing director does really manage the affairs of the company but chairman(non executive director) generally appointed just to fullfil the requirements of the companies act.

CA Kishore Tallam

CA Kishore Tallam (Expert)
Follow

06 April 2012 Agree with Amit.
Over and above, the procedure for appointment and payment of remuneration of Managing Director are governed by specific sections in the Companies act. Where as appointment and payment of remuneration to chairman are governed by general sections.

Upgrade to CAclubindia Pro. Subscribe Now!