Executive Committee Vs Board of Directors

A board of directors is a group of individuals within an organization who oversees strategic planning and decision-making according to their vision, goals values, mission, and vision. The Board of Directors is responsible for balancing the interests of shareholders, keep integrity and plan for the future of their organization.

An executive committee is a section of the board, which is responsible for urgent issues and serves as an instrument for the board. It typically consists of three members: a treasurer, secretary, vice-chairperson, and a chairperson. The chairperson is the chief of the committee and often the CEO the vice-chairperson supports the chairman, acts as a substitute for them when they are not present, and acts as an assistant-in-command. The secretary is responsible for keeping minutes, manages the calendar of committee members and ensures that all members have access to important documents.

A small group is the structure of an executive committee. They are more agile and are able to meet on short notice to make decisions in emergencies. This allows the whole board to concentrate on more important issues during their regular meetings.

A committee of the executive can also take on repetitive tasks https://boardroomsupply.com/flexibility-with-digital-data-room/ and represent the organization when the full board isn’t required to be present, as is the case with standard legal or financial procedures. It is a great way to test controversial ideas and examine how the company responds to them before presenting it to the full board. The committee should not serve as a secondary power structure. It is essential to have a clear delegate of authority and internal checks and checks and balances.

Back To Top