Write difference between Managing Director and Director.

Question 22 of 43

Q. Write difference between Managing Director and Director.

Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2022Subjective· 4mImportance★★★★★

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A director is one member of the Board sharing in collective decisions; a Managing Director is a director given substantial powers to actually manage the company day to day.

Basis	Director	Managing Director
Meaning	A director appointed to the Board of the company	A director entrusted with substantial powers of management to conduct the company's affairs
Position	One of several members of the Board	The chief executive/head who runs the company day to day
Powers	Exercises powers collectively with the Board; individually limited	Has substantial management powers, subject to the Board's superintendence
Day-to-day management	Not individually responsible for daily running	Directly responsible for day-to-day management
Number	A company has several directors (min. 3 in a public company)	Usually only one (or a few) Managing Director(s) in a company
Appointment	Appointed by members (or as provided) as a director	Appointed as MD from among the directors, on prescribed terms and approvals
Number of companies	May be a director in many companies (within the legal limit)	Can be Managing Director of not more than two companies
Remuneration	Usually sitting fees and/or commission	Higher managerial remuneration for full-time management, within legal limits

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2026Set MARCH1 markMCQ
$Q. How many independent directors can a company have?$
(a) (A) 1/4
(b) (B) 2/3
(c) (C) 3/4
(d) (D) 1/3
›Reveal solutionSolution

At least one-third (1/3) of the board of a listed company must be independent directors — the correct option is (D).

To ensure objective and independent oversight, the law requires every listed public company to have at least one-third of its total number of directors as independent directors. (The Central Government may prescribe a minimum number for certain other public companies as well.)

…

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CBSE 2025Set MARCH1 markMCQ
$Q. In how many companies can a person become director?$
(a) (A) 10
(b) (B) 20
(c) (C) 30
(d) (D) 40
›Reveal solutionSolution

A person can be a director in a maximum of 20 companies — option (B).

Section 165 of the Companies Act, 2013 fixes the maximum number of directorships a single person may hold at any one time at 20 companies. Within this limit, the number of public companies must not exceed 10. This ceiling prevents over-commitment and ensures di …

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CBSE 2025Set MARCH1 mark
$Q. How many minimum Directors required in single person company?$
›Reveal solutionSolution

A One Person Company needs a minimum of 1 director.

Under the Companies Act, 2013 the minimum number of directors is: One Person Company – 1, Private company – 2, and Public company – 3. Since a One Person Company has only a single member, the law allows it to function with just one director (who is often the sole member himself). Hence the min …

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CBSE 2022Set MARCH1 markMCQ
$Q. What is the minimum number required as directors in a public company?$
(a) 2
(b) 4
(c) 3
(d) 5
›Reveal solutionSolution

A public company must have a minimum of 3 directors.

Under the Companies Act, 2013 the minimum number of directors is fixed by the type of company: three for a public company, two for a private company and one for a One Person Company. A public company therefore cannot function with fewer than three directors on its board. (The maximum, for any comp …

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CBSE 2022Set MARCH1 mark
$Q. In how many maximum companies a person can function as a Managing Director?$
›Reveal solutionSolution

A person may act as Managing Director in a maximum of 2 companies.

To ensure a Managing Director can devote proper attention to a company, the Companies Act restricts the number of companies in which one person may hold that office. As a rule a person is appointed Managing Director of one company, but he may be appointed as Managing Director (or manager) of not more than one more company — i.e., a maximum of two companies in all — and …

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Q.Write difference between Managing Director and Director.

Concept understanding — Number and Types of Directors

Q.Write difference between Managing Director and Director.

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