Executive Committee Vs Board of Directors

The board of directors is considered to be the highest governing body in a business. 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 appointed or elected by members. The board’s powers, responsibilities and duties are governed by government regulations and the corporation’s constitution and by-laws.

An executive committee is smaller, more focused group that is closely linked to the management. They are able to meet with a short notice to discuss urgent issues that affect the organization and then bring the issue to the attention of the entire board. 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 could have a smaller role.

Typically the executive committee consists of the chairperson, vice-chairperson and treasurer of the board. The chairperson also acts as the spokesperson for the business and ensures that all board and committee activities are in line with the mission. The executive committee is a good option when the organization has to quickly tackle repetitive matters or controversial ideas, since this that site about The best virtual data room group is able to review and approve these questions prior to bringing them up to the full board.

It’s also important to ensure that the committee doesn’t have the power to make decisions that, according to bylaws is properly the responsibility of the full board. Executive committees must have clearly defined charter, a procedure for delegating power as well as internal checks and balances.