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:

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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:

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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:

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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:

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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:

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The appointment of a whole- time director requires the consent of shareholders of the company by a special resolution.