The board of directors is the top governing body of a company. The board is accountable for the company’s goals as well as the decision-making processes. The board of directors consists of senior leaders who are appointed or elected by the members. The corporation’s constitution, bylaws, and regulations of the government govern the director’s powers as well as their duties and responsibilities.

An executive committee is smaller, more focused group with close ties to the executive leadership. They are able to meet on short notice to discuss urgent issues that affect the company and then bring these matters to the attention of the entire 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 be tasked with a specific https://boardroomsupply.com/how-to-run-a-board-meeting/ set of duties.

Typically the executive committee is made up of the chairperson, vice-chairperson and treasurer of the board. The chairperson is also the spokesperson for the company and ensures that all board and committee actions are in line with its mission. The executive committee can be a good option if the organization needs to tackle issues that are frequently asked or controversial ideas. This group can be used to vet and approve the issues before they are brought to the full board.

It is important, however, to ensure that the committee does not assume decision-making powers that are properly the responsibility of the entire board. An executive committee should have clearly defined charter, a procedure for delegating power and internal checks and balances.