This article will help you to learn about the difference between managing director and whole-time directors of a company.
Difference between Managing Director and Whole-Time Director
Managing Director
Difference – 1. Power:
A managing director is director who is entrusted with substantial powers of the management.
Difference – 2. Prohibition:
Section 197 A of the Act prohibits a company from having simultaneously both a managing director and a manager.
Difference – 3. Restriction:
No individual can be appointed for more than five years at a time. [Sec. 317]
Difference – 4. Number of directorship:
A person can be managing A person cannot be whole- director of two companies or time director of more than even more in certain cases, one company. [Sec. 316]
Difference – 5. Appointment:
The appointment of managing director does not necessarily require the consent of the shareholders of the company by means of resolution.
Whole-Time Director
Difference – 1. Power:
A whole-time director is an employee of the company entrusted with powers as per terms of employment.
Difference – 2. Prohibition:
A whole-time director may be appointed along with a manager director.
Difference – 3. Restriction:
There is no such restriction regarding the appointment of a whole-time director.
Difference – 4. Number of directorship:
A person cannot be whole-time director of more than one company.
Difference – 5. Appointment:
The appointment of a whole- time director requires the consent of shareholders of the company by a special resolution.