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MANAGING DIRECTOR V/S DIRECTOR

  MANAGING DIRECTOR
DIRECTOR
Meaning
He is a full time director looking after the day to day management of the company.

Appointment
He is appointed on the board of directors by shareholders and than the board of directors appoints him as a managing director.

Number of Directorship
Normally, no person can be appointed as a managing director if he is either a managing director or director of any other company.

Period of appointments
He is appointed for a period of 5 years and he is not subject to retirement by rotation.


Permission of Central Government
Permission of central government is required for a person to be appointed as Managing Director of more than 2 Companies.
Meaning
A Director need not be a full time Director. He can take part in the meeting of the board meeting.

Appointment
A director is elected by the shareholders by passing a resolution at annual general meeting.


Number of Directorship
No person shall hold a office of director in more than 20 Public limited companies.


Period of appointments
Normally a director (other than a Permanent Director) he is appointed for a period 3 years and he is subject to rotation.

Permission of central government
Permission of central government is not required for a person to be appointed as Director of more than 2 companies.

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