The term managing director is often used to refer to a senior executive member of a company. The job scope of the managing director is not spelt out in the Companies Act. However, there is an option to list an individual as a managing director of a company in Bizfile+, the business filing portal of the Accounting and Corporate Regulatory Authority (ACRA).
The model constitution mentions that the managing director should be a member of the board of directors and thus the managing director should be involved in managing the day to day matters of the company.
The roles and duties of a managing director may include and are not limited to:
- Give strategic advice and report results and findings to the chairman and board members.
- Keep all relevant stakeholders informed of developments online with the company’s objectives.
- Manage resources, including the attracting, hiring and retention of personnel.
- Ensure employees move in the same strategic direction to achieve its mission.
- Create and report on business plans, monitoring its efficacy and progress.
- Remain close to all stakeholders including the chairman and board members, staff, clients, key decision-makers and external service suppliers.
- Research and implement new initiatives to drive revenue, lower operating costs while maintaining quality products that are competitive, all while delivering excellent customer support.
- Continuous monitoring of the annual budget and ensure that revenue/ sales targets are met.
- Manage and report on the effective implementation of a marketing strategy to maintain market relevance and promote products and services to increase sales.
- Manage key personnel, clients and service providers.
- Maintain the quality of products, services, customer support and level of service in line with service level agreements and other retention strategies.
- Promote the wellness of staff and implementing policies in line with labour legislation and health and safety guidelines to create a diverse and positive working environment.
- Preparation of annual reports and attending/presenting at board meetings.
To many, the role of managing director and chief executive officer are loosely interchangeable. In some cases, the same person may hold the position of managing director and chief executive officer. This, however, is not common.
Do note that it is not a requirement for a company to appoint a managing director. It is, however, a requirement to update ACRA with the details of all managing directors within 14 days of their appointment. The details required are:
- Full names of the managing directors;
- Their residential addresses;
- Identification document numbers;
- Dates of appointment; and
- Dates of cessation of any appointment.
The register of managing directors should also be maintained and updated.
When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.
The editorial team at Acra Filing Agent
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