The board of directors is the corporate’s top governing body. The board of directors is the one that steers the decision-making process, and steers the company towards its goals. The board of directors is made up of senior leaders who are appointed or elected by the members. The corporate constitution, bylaws and other regulations of the government govern the board of directors’ powers and duties.
An executive committee is a smaller group that has close ties with the leadership and who can meet on short notice and discuss urgent issues that affect the organization and then bring them to the full board’s attention. The executive committee can have the same responsibilities as the board on the organisation’s structure and its bylaws.
The executive committee is typically comprised of three people including the chairperson, vice-chairperson and the treasurer. The chairperson also serves as the spokesperson and ensures that all actions of the board and committees are aligned with the organization’s mission. The executive committee may be a great option when an organization wants to quickly address repetitive issues or controversial ideas. This group could be utilized to approve and vet the issues before they are discussed with the board.
It’s important, however, to ensure that the committee does see page https://boardroomsupply.com/the-best-virtual-data-room/ not assume decision-making power that is properly the responsibility of the board in general. Executive committees should have an explicit chart of its purpose, a clear procedure for delegating authority, and an internal set of checks and balances.