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:

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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:

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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:

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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:

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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:

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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:

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There is no such provision in case of managing directors.