Managing Director Job Description, KRAs and Skills

A Managing Director is the most senior executive on the board and is entrusted by it with running the company. It is a statutory role under the Companies Act, so the Managing Director carries legal responsibility as well as executive power. They set direction with the board, lead the leadership team, and own the company's results. A good Managing Director delivers the plan, keeps the company financially sound and compliant, builds a strong leadership team, and represents the company to shareholders, regulators and major partners.

Detail	For this role
Department	Leadership and Senior Management
Level	Leadership
Reports to	Board of Directors
Direct reports	Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Business Heads
Experience	20+ years in senior leadership, with a record of running a company or large business

Managing Director job description template

Copy this job description, replace the text in square brackets and post it on your careers page or a job portal.

Job title: Managing Director

Department: Leadership and Senior Management

Reports to: Board of Directors

Location: [City], [office, branch or site]

About the role

Key responsibilities

Run the company day to day within the powers delegated by the board.
Set strategy and the annual plan with the board, and deliver the approved results.
Lead and hold the leadership team accountable for their functions and numbers.
Own the profit and loss, cash and balance sheet, and keep the company financially sound.
Carry the legal duties of a Managing Director under the Companies Act.
Approve major decisions on capital, fundraising, acquisitions and large contracts.
Represent the company to shareholders, regulators, banks and major partners.
Set the culture and values, and safeguard the company's ethics and compliance.
Manage enterprise risk, and keep the board informed of the big risks.
Report performance, decisions and the outlook to the board at every meeting.

Requirements

MBA or a strong record of running a business
Meets the eligibility for a Managing Director under the Companies Act
A Director Identification Number is required to be appointed
20+ years in senior leadership, with a record of running a company or large business

KRAs and KPIs for a Managing Director

Key result areas for the appraisal form, each with a KPI you can measure every month or quarter.

Key result area	How to measure it
Business performance	Revenue and profit meet or beat the board-approved plan
Financial health	Cash, debt and covenants kept within the limits agreed with the board
Strategy delivery	Agreed strategic milestones for the year completed on time
Governance and compliance	No major statutory or governance breaches during the year
Leadership team	Key leadership roles filled and retained above target
Stakeholder confidence	Board and investor confidence maintained through the year

Skills and tools

Business leadershipStrategyP and L ownershipCorporate governanceCapital allocationBoard and investor relationsRisk managementDecision making

Tools used day to day: Board reporting packs, BI dashboards, Financial statements, MS Excel, PowerPoint.

Reporting line and career path

Moves up from: Chief Executive Officer, President, Executive Director
Next roles: Board Chairman, Group Managing Director

Interview questions for a Managing Director

How would you set the direction for this company in your first six months?
How do you keep the company financially sound while still investing in growth?
What are your specific legal duties as a Managing Director under the Companies Act?
How do you work with the board without letting it run the company or being run by it?
Tell me about a turnaround or crisis you led and the result.
How do you decide which leaders to keep, coach or replace on your team?

Managing a Managing Director in ZeniaHR

AttendanceThe Managing Director is on the payroll but works General office hours with heavy travel and board duties. Do not run attendance rules or late marks. Keep a profile in Employees, and a simple web or mobile app punch is enough if presence is recorded at all.LeaveThe Managing Director rarely files leave in the usual way. Record longer absences in the leave calendar so the leadership team knows who chairs meetings and signs off in their place. Avoid board-meeting weeks and statutory deadlines.Performance and KRAsThe board evaluates the Managing Director against the approved plan and statutory duties, not an HR appraisal. HR does not run a review cycle for this role; store the board's evaluation and revised targets in Employee Documents.

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Frequently asked questions

What does a Managing Director do?

A Managing Director is the top executive on the board, entrusted by it to run the company. They set strategy with the board, lead the leadership team, own the profit and loss, approve major decisions, manage risk and represent the company to shareholders and regulators. It is a statutory role, so they also carry legal responsibility under the Companies Act.

What is the difference between a Managing Director and a CEO?

A Managing Director is a statutory role under the Companies Act, a director with substantial management powers who carries legal responsibility. A Chief Executive Officer is the top executive title but is not always a board member. Often one person holds both. Where they differ, the Managing Director bears the legal duties of the office.

Who appoints a Managing Director?

The board appoints a Managing Director, usually with shareholder approval, for a fixed term under the Companies Act. The person must meet the eligibility conditions in the Act and hold a Director Identification Number. Their powers, term and pay are set by the board and shareholders and recorded in the appointment terms.