Executive Committee Vs Board of Directors

The board of directors is a corporate’s top governing body. The board is accountable for the company’s goals as well as the decision-making processes. The board of directors is composed of high-ranking leaders which are typically appointed or elected by the members. The board’s powers, duties and obligations are governed by the laws and regulations of the government as well as the corporation’s constitution and by-laws.

An executive committee is a smaller, more focused group that has close ties to the executive leadership. They are able to meet with a short notice to discuss urgent issues that impact the company and then bring the issue to the attention of the entire board. The executive committee could have the same responsibilities and responsibilities as the board, depending on the organizational structure of the company as well as its bylaws.

Typically, the executive committee is made up of the chairperson, vice-chairperson and treasurer of the board. The chairperson also acts as the spokesperson for the organization and ensures that all board and committee activities are in line with its mission. The executive committee can also be a good option if the organization needs to quickly address repetitive issues or ideas that are controversial. This group could be used for vetting and approving these issues prior to them being brought to the full board.

However, it’s essential to make sure the committee doesn’t take www.boardroomsupply.com/tips-to-organize-an-efficient-online-board-meeting/ on decision-making authority that, under the bylaws belongs to the entire board. An executive committee should have an explicit chart of its purpose, a clear procedure to delegate authority, and an internal set of checks and balances.