The board of directors is a top governing body of a company. This body is responsible for the company’s objectives and the decision-making process. The board of directors is composed of top leaders which are typically appointed or elected by members. The constitution of the corporation, its bylaws and regulations from the government regulate the board of directors’ powers as well as their duties and responsibilities.
An executive committee is a smaller, more intimate group with close ties through the leadership and who can meet on short notice to discuss pressing issues that affect the organization and https://boardroomsupply.com/executive-committee-vs-board-of-directors/ then bring them to the full board’s attention. Based on the structure of the company and bylaws the executive committee could be able to perform the same duties as the board of directors. Or it 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 serves as the spokesperson and ensures all committee and board activities align with the organisation’s mission. The executive committee may be a great option when the organization is looking to address issues that are repetitive or controversial ideas. This group could be used for vetting and approving the issues before they are discussed with the board.
It’s important, however, to ensure that the committee does not assume decision-making responsibilities that are properly the responsibility of the board in general. Executive committees should have an unambiguous chart of its purpose, a clear procedure for delegating authority and an internal system of checks and balances.
