| Basis | Managing Director | Manager |
| 1. Meaning | The Managing Director is appointed by the Board to look after the day-to-day administration of the company. | The manager is in charge of the whole management affairs of the company. |
| 2. Appointment | The managing director is appointed by an agreement with the company or by resolution passed by the company in a Board meeting or by virtue of its Articles of Associations of the company. | The manager is appointed under a contract of service. |
| 3. Remuneratio | MD is entitled to either a monthly salary or 5% of net profit. If there is more than one managing director, the maximum remuneration payable is 10% of the net profit. | Maximum remuneration to a manager cannot be more than 5% of the net profit. |
| 4. Number of posts | A company may have more than one Managing Director. He can be M.D. in maximum of 2 companies. | The company can have only one post of manager. |
| 5. Power | He is given substantial powers of management. | He is entrusted with whole powers of management. |
| 6. Position held | The managing director must be the director of the company. | The manager need not be a director of the company. |
