Executive Committee Vs Board of Directors

The board of directors is a corporate’s top governing body. The board is accountable for the organization’s goals and the decision-making process. The board of directors is comprised of high-ranking leaders who are appointed or elected by members. The board’s authority, duties and responsibility are defined by government regulations and the corporation’s constitution and by-laws.

An executive committee is an smaller, more focused https://boardroomsupply.com/tips-to-organize-an-efficient-online-board-meeting/ group that is closely linked to the executive. They may meet on short notice to discuss urgent issues that impact the company and then bring the issues to the attention of the entire board. The executive committee could have the same responsibilities and responsibilities as the board on the organization’s structure and its bylaws.

Typically the executive committee consists of the chairperson, vice-chairperson, and treasurer of the board. The chairperson is also the spokesperson for the company and ensures that all committee and board activities are in line with its mission. The executive committee is also a good option when an organization requires quick action to tackle repetitive matters or controversial ideas, as this group can be used to review and approve these questions prior to bringing them up to the board in its entirety.

However, it’s important to make sure the committee doesn’t take on the power to make decisions that, according to bylaws properly belongs with the full board. Executive committees should have clearly defined charter, a clearly defined procedure for delegating authority, and an internal set of checks and balances.