MD Means Managing Director,
MD first elected as a director by the board of directors/sharholders of the company. director of the company only can act as managing director.
Under Section 2(26) and S. 2(13) of companies act 1956, a managing director is considered different from an ordinary director. Whether a director would be considered as a whole-time director or managing director depends on the types of duties assigned to him. There may be more than one managing director in a company.
A managing director, as defined in Section 2(26), means a director who is encrusted with substantial powers of management which would not otherwise be exercisable by him. The "substantial powers" of management may be conferred upon him by virtue of an agreement with the company, or by a resolution of the company or the Board or by virtue of its memorandum and articles. The powers so conferred are alterable by the company. He is also removable the same way as he was appointed
irrespective of the fact that his appointment has been approved by the Central Government. But if he is prematurely removed from office he is entitled to compensation. A managing director is an employee of the company, but not to the extent so as to be entitled to preferential payments
relevent sections are Sec252, 253, 254, 267 of Companies ACt 1956.