The board of directors is the top governing body of a company. The board is responsible for the decisions and guides the organization towards its goals. The board of directors is comprised of senior leaders who are elected or appointed by members. The corporation’s constitution, bylaws, and regulations of the government govern the board of directors’ authority and duties.
An executive committee is a smaller, more focused group with close ties to the leadership. They may meet with a short notice to discuss urgent issues that impact the company and then bring these matters to the attention of the entire board. The executive committee can have the same responsibilities and responsibilities as the board, based 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 also acts as the spokesperson and ensures that actions of the board and committees are aligned with the company’s goals. The executive committee is also a good option when the organization has to quickly resolve issues that are repetitive or have controversial ideas, as this group can be used to scrutinize and approve questions prior to bringing them up to the board in its entirety.
It’s also important to ensure that the committee doesn’t take on the decision-making power that according to the bylaws is properly the responsibility of the entire board. An executive committee should have clearly defined charter, a procedure to delegate power, and internal checks and balances.
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