Executive Committee Vs Board of Directors
The board of directors is considered to be the highest authority in a company’s. The board is accountable for the company’s objectives and the decision-making processes. The board of directors is made up of senior leaders who are elected or appointed by the members. The board’s powers, duties and responsibility are defined by corporate regulations as well as by the law of the land. constitution and by-laws.
An executive committee is smaller, more focused group with close ties to the leadership. They may meet on short notice to discuss urgent issues that impact the company and then bring these issues to the attention of the board. Based on the structure of the company and bylaws, the executive committee may have the same responsibilities as the board of directors. Or it could have a smaller role.
The executive committee is generally composed of three members consisting of the chairperson, vice-chairperson and the treasurer. The chairperson is also the spokesperson for the business and ensures that all board and committee actions are in line with its mission. The executive committee could be a good option if the organization needs to tackle issues that are frequently asked or ideas that are controversial. This group is used to vet and approve the proposed ideas prior to being presented to the board in its entirety.
It’s also important to make sure the committee doesn’t take on decision-making authority that under the bylaws should be a part of the entire board. Executive committees should have a clear charter, a clearly defined procedure for delegating authority and an internal set of checks and balances.