Managing Director vs. Chair: What's the Difference?

The managing director and the chair have different roles within a limited company (AS). Simply put, the managing director leads the business day-to-day, while the board is responsible for management, control, and overall direction. The chair leads the board's work.

The specific division of responsibility follows law, articles of association, board instructions, and resolutions. Therefore, you should avoid assuming that the job title alone grants authority for any agreement.

What does a managing director do?

A managing director is typically responsible for day-to-day management within the framework set by the board. This role can encompass employees, customers, deliveries, budget follow-up, and strategy implementation. Matters that, given the company's circumstances, are of an unusual nature or great importance, do not normally fall under day-to-day management alone.

Not all limited companies have a managing director. In smaller businesses, the board or the chair may be more closely involved in operations.

What does the chair do?

The chair organises and leads the board's work. The board must, among other things, ensure proper organisation, exercise supervision, and monitor finances. The board often appoints the managing director and follows up on management on behalf of the company and its owners.

The chair is not automatically the managing director's superior in all ongoing individual matters in the same way as an ordinary line manager. The board exercises authority as a collegiate body, even though the chair has a central function.

Who should you contact?

For sales, deliveries, and operational collaboration, the managing director or a relevant specialist manager is often the right point of contact. For ownership, major strategic collaborations, management changes, or board matters, the chair may be more relevant.

When signing agreements, you must also check the company's registered signatory and procuration arrangements. A role listing indicates who holds the role, but not necessarily who alone can bind the company in the matter concerned.

Roles on Proffi

Proffi should display active roles, start date when available, and the legal entity the role applies to. Historical roles should be clearly distinguished from active ones. The information must have a source and an update time, and the user should be able to proceed to public registry information.