It is very normal for people to be confused with business terms like CEO and Managing Director. It is in the hand of the MD to look after GST annual return due date like responsibilities. The Managing Director controls the day-to-day operation of a business and the managing director has to work closely with the CEO. The ultimate result is that both the CEO and Managing Director have to report to the board of directors.

CEO and Managing Director: Responsibility-wise Segregation

Though, both the Managing Director and CEO (Chief Executive Officer) have to be responsible to the Board of Directors but there is a clear separation line between both the designations. 

Role and Responsibility of CEO

The CEO chalks out the business plan along with the President, Vice President, Board of Directors, Managing Director, and other persons. Though the CEOs are considered as the face of the company and they get the highest perks and salaries, their fate mostly depends on the profit and loss of a particular business venture.

Role and Responsibility of Managing Director

The Managing Director has to continue the relationship with all the departments like marketing, sales and so on. The Managing Director has to keep the relationship with other business organisations as well. Keeping a tab on the staff-hiring process, the business expenditure, how to file ITR online for salaried persons, and making recommendations to the CEO regarding how the business is going to be improved are also some of the other works that are executed by the Managing Director. 

Have a Look at Table Chart to Understand the Difference Clearly 

You can have a look at the Table Chart that will help you to understand the difference between CEO and MD.

The table can help you to understand the difference between CEO and MD.

Why A Company Requires Both CEO and MD for Its Prosperity

A company requires both CEO and MD to make it prosper at full scale. 

A. Responsible to Board of Directors

Both the CEO and Managing Director are responsible to the Board of Directors for providing strategic business plans. So, in one way, the CEO and MD are working uniformly for the development of the company.

B. Operating a Company Smoothly

The smooth operation of a company is the aim of both the CEO and MD. A company cannot prosper if both the CEO and MD do not work smoothly. 

C. Creating Something Exemplary

Both the CEO and Managing Director are aimed to set an example before the employees to make them inspired to do something exemplary. 

These three points are perfect examples of why a CEO and MD need to work uniformly for the sake of making a company prosper.

How Online Legal India™ Can Help in the Business Process?

With gaining knowledge on the different functionalities of CEO and MD, it is also important to know about how the company registration process works. Online Legal India™ can help you with the entire registration procedure. 

The Online Legal India™ CA, CS team can also help you with how to incorporate a public limited company. So, if you take help from the experts, your work can be done in a hassle-free way. 

Conclusion 

In brief, a CEO and Managing Director are the responsible parts of a company. While the MD or Managing Director looks after the daily company operation, the CEO thinks about the future of the company. 

So, despite differences, both CEO and Managing Director actually work for the prosperity of the company.