| Basis | Director | Managing Director |
| 1. Meaning | Director is the elected representative of the shareholders of the company. | The managing director represents the board in the day-today activities of the business. |
| 2. Appointment | He is elected at the Annual General Meeting by the members of the company. | He is appointed by the board of directors. |
| 3. Tenure | Directors of public companies retire by rotation. Maximum tenure is of 3 years, 1/3 of Independent Director is not liable to retire by rotation. | The tenure of managing director is for a term of five years. |
| 4. Remuneration | Remuneration for services is given as per specific provisions. The director is given sitting fees to attend the board meeting which may extend up to ₹ 1 lakh plus remuneration. | M.D is entitled to either a monthly salary or 5 % of the net profit. If more than one M.D. is appointed then maximum remuneration cannot be more than 10% of the net profit. |
| 5. Status | Directors are elected representatives of the shareholders managing company in absence of shareholders. They can be agents of the company but not employees of the company. | Managing Director has dual status i.e. a director and a manager (employee). |
| 6. Positions held | Director is the only member or person on the board. | The managing director is the director on the Board. M.D. is the whole time manager in the company. |
| 7. Number of companies | Director can work in 20 companies at a time wherein a maximum of 10 public companies at a time. | A person can be an M.D. of a maximum of 2 companies at a time. |
