The board of directors is considered to be the highest governing body in a business. This body is responsible for the company's objectives and the decision-making processes. The board of directors consists of senior leaders who are appointed or elected by members. Its powers, duties and duties are governed by rules of the government and the company's constitution and by-laws.
An executive committee is a boardroomsupply.com smaller, more focused group that is closely linked to the executive leadership. They can convene on short notice to discuss urgent issues that affect the company and then bring the issues to the attention of the entire board. Based on the structure of the company and bylaws, the executive committee may be able to perform the same duties as the board of directors, or it can have limited duties.
The executive committee is typically comprised of three people: the chairperson, the vice-chairperson, and the treasurer. The chairperson also acts as the spokesperson for the company and ensures that all committee and board actions are in line with its mission. The executive committee can also be an option if the organization has to quickly deal with repetitive issues or controversial ideas, since the committee can be used to examine and approve issues prior to presenting them to the full board.
However, it's crucial to make sure the committee doesn't have decision-making authority that under the bylaws properly belongs with the board in its entirety. Executive committees should have clearly defined chart of its purpose, a clear procedure to delegate authority and an internal set of checks and balances.
