17 Jul Executive Committee Vs Board of Directors
The board of directors is the top governing body of a company. The board is accountable for the goals of the organization and the decision-making process. The board of directors is comprised of senior-level leaders, who are usually appointed or elected by the members. Its powers, duties and responsibilities are governed by rules of the government and the company’s constitution and by-laws.
An executive committee is smaller, more focused group with close ties to the leadership. They may meet with a short notice to discuss urgent concerns that affect the business and then bring the issue to the attention of the entire board. The executive committee could have the same duties and responsibilities as the board, based on the organisation’s structure and its bylaws.
The executive committee is usually composed of three members: the chairperson, the vice-chairperson, and the treasurer. The chairperson is also the spokesperson of the organization and ensures that all committee and board activities are in line with the mission. The executive committee can also be a good choice if the company is seeking to address issues that are repetitive or controversial ideas. This group could be used for vetting and https://boardroomsupply.com/ approving these issues prior to them being presented to the board in its entirety.
It is crucial, however, to ensure that the committee doesn’t take on decision-making authority that is properly the responsibility of the entire board. An executive committee should have clearly defined chart, a method for delegating power as well as internal checks and balances.
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