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Investigates whether emotional intelligence measured by the Swinburne University Emotional Intelligence Test predicted transformational, transactional and laissez‐faire leadership styles measured by the multifactor leadership questionnaire in 110 senior level managers. Effective leaders were identified as those who reported transformational rather than transactional behaviours. Emotional intelligence correlated highly with all components of transformational leadership, with the components of understanding of emotions (external) and emotional management the best predictors of this type of leadership style. The utility of emotional intelligence testing in leadership selection and development is discussed.