Companies Act 2014 section 159

Managing director

Section 159 sets out how a company's directors may appoint one or more of their number as managing director, determine remuneration, and delegate powers to that role.

• Directors may appoint one or more of themselves as managing director (or equivalent title such as CEO) for a period and on terms they see fit, and may revoke the appointment subject to any specific agreement in place.
• A managing director's appointment automatically ends if they cease to be a director, though they may still claim damages for breach of any service contract with the company.
• Remuneration for a managing director — whether by salary, commission, profit share, or a combination — is determined by the directors.
• Directors may delegate any of their own powers to the managing director, either to be exercised concurrently or to the exclusion of the directors' own use, and may later revoke or amend such delegation.