The board of directors is the company’s highest governing body. The board of directors is the one that steers the decision-making process and steers the organization toward its goals. The board of directors is made up of top-level executives, which are typically appointed or elected by the members. Its powers, duties and responsibility are defined by laws and regulations of the government as well as the corporation’s constitution and by-laws.
An executive committee is a smaller group with close ties through the leadership and who can meet on short notice to discuss urgent matters that affect the organization and 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 can have limited duties.
The executive committee is generally comprised of three people consisting of the chairperson, vice-chairperson, and the treasurer. The chairperson also acts as the spokesperson for https://boardroomsupply.com/how-to-run-a-board-meeting/ the organization and ensures that all board and committee activities are aligned with its mission. The executive committee can also be an option if an organization requires quick action to tackle repetitive matters or controversial ideas, since this group can be used to examine and approve issues prior to presenting them to the full board.
It’s also important to make sure the committee isn’t able to take on the power to make decisions that, according to bylaws belongs to the full board. An executive committee must have an explicit chart, a method for delegating power as well as internal checks and balances.
