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Question
Distinguish between the following:
Managing Director and Whole Time Director
Solution
| Sr. No. | Managing director | Whole Time Director |
| 1 | A Director who is appointed from amongst the Directors as a Chief Executive Officer and entrusted with the substantial powers of management is called a Managing Director. | A Director Who is appointed by the company under a special contract of service as a full-time employee is called a Whole-time Director. |
| 2 | He is appointed for a period of a maximum of five years at a time and is not subject to retirement by rotation as long as he holds his office. | He is a full-time employee of the company. The terms and conditions of his appointment are regulated by the contract of service. |
| 3 | He can work as Managing Director in not more than two companies. | He is a full-time employee of the company and, therefore, cannot work in another company. |
| 4 | Managing director entrusted with or enjoys substantial powers of management. | The whole-time director’s powers are defined by the terms of appointment. He does not have discretionary powers to take decisions on policy matters. |
| 5 | A company may appoint either a Managing Director or a Manager. A Manager cannot be appointed along With the Managing Director. A Manager is generally appointed by small companies, in the place of the Managing Director. | A company can appoint a Whole-time Director simultaneously with the Manager or Managing Director. A whole-time Director is generally appointed by big companies to assist the Manager or the Managing Director. |
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