The board of directors is considered to be the highest executive body in a business. The board of directors is the one that steers the decisions and guides the company towards its goals. The board of directors is made up of senior leaders who are elected or appointed by members. The constitution of the corporation, its bylaws and government regulations govern the board of directors’ power, duties and responsibilities.
An executive committee is a smaller group that has close ties through the leadership who can be gathered on short notice and discuss urgent matters that impact the company and then bring them to the board’s attention. Depending on the company’s structure and bylaws the executive committee could have the same responsibilities as the board of directors, or it https://boardroomsupply.com/tips-to-organize-an-efficient-online-board-meeting/ may have a limited role.
Typically, the executive committee is made up of the chairperson, vice-chairperson, and treasurer of the board. The chairperson also acts as the spokesperson, and ensures that all committee and board activities align with the organisation’s mission. The executive committee is also an option if the organization has to quickly deal with repetitive issues or controversial ideas, since this group can be used to review and approve these questions prior to bringing them up to the board in its entirety.
It’s crucial, however to ensure that the committee does not assume decision-making power that is properly the responsibility of the entire board. An executive committee must have a clearly defined charter, a system for delegating power as well as internal checks and balances.
