The board of directors is the top the governing body of a business. This body is responsible for the company’s objectives and the decision-making processes. The board of directors consists of top-level executives, who are usually appointed or elected by the members. Its powers, duties and responsibilities are governed by laws and regulations of the government as well as the corporation’s constitution and by-laws.
An executive committee is a smaller, more focused group that is closely linked to the executive. They may 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. The executive committee https://boardroomsupply.com/executive-committee-vs-board-of-directors/ can have the same responsibilities and duties as the board on the structure of the company and its bylaws.
The executive committee is generally comprised of three people comprising the chairperson, the vice-chairperson and the treasurer. The chairperson also serves as the spokesperson and ensures all board and committee activities are in line with the organization’s mission. The executive committee is an option if the organization needs to quickly take on recurring issues or controversial ideas, as this group is able to scrutinize and approve questions prior to bringing them up to the full board.
It is crucial, however, to ensure that the committee doesn’t assume decision-making powers that are properly the responsibility of the entire board. An executive committee must have an explicit charter, a process for delegating power, and internal checks and balances.
