Full Form of CMD

Full Form of CMD:

Chairman & Managing Director

CMD Full Form is Chairman & Managing Director. CMD is a professional designation attributed to those persons who direct the management and lead the Board of Directors of a company at the same time. This is a designation that can be created by the merger of two different designations namely Chairman, and MD.

The importance and role of a CMD can be equal to or greater than those of a CEO ( Chief Executive Officer) or a COO (Chief Operating Officer ). The CMD of a company is responsible for managing all day-to-day activities of a company and supervising the decisions, regulations, and operations set up by the company executives.

Full Form of CMD
Full Form of CMD

Usually the individual, having the largest stock holder of the company, is appointed as the CMD. It does not officially mean that the founder or co-founder of a company will be the CMD. In business organizations, MDs are appointed as whole-time professionals, but the post of Chairman can be part-time or independent. But the merger of these two posts creates a more concrete and responsible designation. The duration of a CMD can vary from one company to the other. But, in order to dethrone a CMD, shareholders and Board of Directors should call a general meeting and raise the proposal of unreliability of the CMD.

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