Executive Committee Vs Board of Directors
The board of directors is the company’s highest governing body. The board is responsible for the decision-making process and steers the organization toward its goals. The board of directors is made up of senior leaders who are elected or appointed by members. The board’s powers, duties and obligations are governed by the corporate regulations as well as by the law of the land. constitution and by-laws.
An executive committee is smaller, more focused group that is closely linked to the executive. They may meet with a short notice to discuss urgent issues that impact the company and then bring the issue to the attention of the entire board. The executive committee may have the same duties and responsibilities as the board, based on the structure of the company and its bylaws.
The executive committee is typically comprised of three members: the chairperson, the vice-chairperson, and the treasurer. The chairperson also serves as the spokesperson, and ensures that all committee and board activities align with the company’s goals. The executive committee is also an option if an organization requires quick action to take on recurring issues or controversial ideas, since the committee can be used to vet and approve these matters before bringing them to the board in its entirety.
However, it’s crucial to ensure that the committee doesn’t have the decision-making power that according to the bylaws is properly the responsibility of the full board. Executive committees must have an explicit chart, a method for delegating power, and internal checks and balances.