Because the Chancellor is a fairly ceremonial position / a governance position. In the british model (which is where the name comes from), chancellor’s usually basically the chairman of the university’s governing council (senate), whereas the VC is the actual person in charge of university operations. It’s analogous to the difference between Chair of the Board and CEO of a company, with the chancellor being chair of the board and the VC being the CEO. Some universities dont have the same kind of Senate like body, but retain the name VC for the effective managing director anyway.
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