The board of directors is the top executive body in a business. The board is accountable for the company’s goals as well as the decision-making process. The board of directors is composed of high-ranking leaders who are usually appointed or elected by members. Its powers, duties and responsibility are defined by rules of www.boardroomsupply.com/how-to-run-a-board-meeting/ the government and the company’s constitution and by-laws.
An executive committee is an smaller, more focused group with close ties to the executive leadership. They are able to be able to meet at short notice to discuss urgent issues that impact the company and then bring the issue to the attention of the entire board. Depending on the company’s structure and bylaws, the executive committee may be able to perform the same duties as the board of directors. However, it could be tasked with a specific set of duties.
Typically, the executive committee is made up of the chairperson, vice-chairperson, and treasurer of the board. The chairperson is also the spokesperson and ensures that all activities of the board and committee are in line with the mission of the organization. The executive committee is also an ideal option when an organization requires quick action to deal with repetitive issues or controversial ideas, as this group is able to vet and approve these matters before bringing them to the board in its entirety.
However, it’s essential to make sure the committee doesn’t take on decision-making authority that under the bylaws should be a part of the board in its entirety. An executive committee should have an unambiguous charter, a clear process for delegating authority and an internal set of checks and balances.