Question

Distinguish between the following:

Managing Director and Whole Time Director

Answer 1

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.