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MD full form in company is Managing Director. A company’s managing director is one of the highest-ranking executives who is essentially responsible for the day to day functioning of the company. In this blog post, we shall explain who an MD is, their functions and also provide you with the list of famous MDs in India.
MD full form is Managing Director. An MD is a senior executive at a company. They are responsible for leading and managing the company’s overall operations as well as the business strategy.
The MD holds substantial decision-making power and works with the board of directors, shareholders and the executive team. They ensure company’s compliance with regulations and usually report their performance to the Board of Directors.
To become an MD in India, the minimum age requirement is 21 years. An individual older than 70 years cannot become an MD unless a special resolution at a general meeting is passed for approving their appointment as an MD.
An MD performs numerous functions for the benefit of the company. Mentioned below are some of the major functions of an MD:
One of the most important and basic functions of MD is to manage and supervise all aspects of daily operations of the company they’re a part of.
They guide the long term vision as well as strategic goals of the company.
An MD creates, implements and oversees business plans to ensure day to day operations align with strategic objectives.
They ensure resources are allocated effectively.
Also, they keep an eye on the financial performance.
They often motivate the employees of the company to boost their performance.
The ultimate responsibility for achieving the corporation’s objective typically lies with them.
They act as the corporation’s face at times of stakeholder meetings, strategic collaborations and negotiations.
They make sure the board’s decisions as well as directives are implemented across all the departments in an effective manner.
They often make high level decisions concerning business operations, growth and way forward.
They drive initiatives for the purpose of securing long term success and development of the business.
While no specific qualifications are required to become an MD in a company, the following are generally considered desirable:
A bachelor’s or master’s degree in business administration, commerce, law, economics or a related field is often desirable. However, it isn’t mandatory.
Generally, an individual considered for MD position is expected to have experience in senior managerial or executive roles, preferably in the same/similar sector.
They are expected to have industry knowledge and market trends. They are also expected to stay updated regarding latest compliance requirements, laws, amendments, etc. that are relevant to their industry.
They must possess the ability to head various departments and ensure their compliance with board decisions and directives.
An ideal candidate for MD position must possess the ability to set long term goals and expand business operations.
Here’s a list of some of the most famous managing directors in Indian companies:
Natarajan Chandrasekaran: He is the MD and Chairman of Tata Sons.
Sashidhar Jagdishan: He is HDFC Bank CEO and MD.
Rama Mohan Rao Amara: He is SBI Bank MD. Apart from him, the bank has two more MDs namely Rana Ashutosh Kumar Singh and Ashwini Kumar Tewari.
Sundararaman Ramamurthy: He is the MD as well as CEO of Bombay Stock Exchange.
Srini Pallia: He is the Chief Executive Officer and Managing Director of Wipro Limited.
Salil Parekh: MD of Infosys is Salil Parekh. He also serves as the company's CEO.
Deepinder Goyal: He is the Founder, CEO and MD of Eternal Ltd (formerly known as Zomato).
C. Vijayakumar: The MD of HCLTech is C. Vijayakumar.
Mohit Joshi: He is the CEO and Managing Director of Tech Mahindra.
Sandip Patel: He is the MD for IBM India & South Asia region.
MD stands for Managing Director. An MD plays an indispensable role in the private limited company. They lead the corporation, set its strategic directions, manage daily operations and activities and work hard to make sure the company’s objectives are achieved. They also protect the interests of the stakeholders. A company MD is essential for corporate governance as they ensure the business decisions, policies and operations align with legal requirements as well as ethical norms.
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Q1. What is the full form of MD?
A. MD full form in company is Managing Director. An MD is a high ranking executive at a company.
Q2. Who is the MD of Tata Sons?
A. Tata Sons MD is Natarajan Chandrasekaran.
Q3. What is Managing Director definition according to Companies Act 2013?
A. According to Section 2(54) of Companies Act 2013, a “managing director” means “a director who, by virtue of the articles of a company or an agreement with the company or a resolution passed in its general meeting, or by its Board of Directors, is entrusted with substantial powers of management of the affairs of the company and includes a director occupying the position of managing director, by whatever name called.”
Q4. Who is the MD of Eternal Ltd?
A. Eternal MD is Deepinder Goyal. He is also the company’s CEO and founder.
Q5. What is the minimum age required to become an MD in a company?
A. According to Section 196(3)(a) of the Companies Act 2013, the age of MD should not be below 21 years. There’s also a maximum age limit of 70 years. However, a person above 70 years may be appointed as an MD by passing a special resolution at general meeting after obtaining shareholders’ approval.
Q6. Can a foreign national be an MD in an Indian company?
A. Yes, a foreign national can be an MD in an Indian company as long as they comply with all the legal requirements.
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