This article will help you to learn about the difference between manager and managing director of a company.
Difference between Manager and Managing Director
Manager
1. Need:
A manager may or may not be a director of the company.
2. Power:
In case of a manager, Sec. 2 (24) of Act provides that he has the management of the whole or substantially the whole of a company.
3. Number:
A company cannot have more than one manager.
4. Contract:
A manager need not be under a formal contract of service.
5. Disqualification:
In case of appointment or employment of manager the disqualifications shall operate only if they occurred during the five years immediately preceding the date of his appointment. [Sec. 385]
6. Removal of disqualification:
The Central Government by way of notification in the official gazette may remove the disqualifications for the appointment of manager.
Managing Director
1. Need:
A managing director must be a director of the company as well.
2. Power:
In case of a managing director Sec. 2(26) of the Act provides that he is entrusted with substantial powers of the company.
3. Number:
A company may have more than one managing director.
4. Contract:
A managing director is appointed by virtue of an agreement with the company.
5. Disqualification:
In case of appointment or employment of a managing director, the same disqualifications will operate even if they have taken place at any time during the life of that person. [Sec. 26]
6. Removal of qualification:
There is no such provision in case of managing directors.