The board of directors is considered to be the highest executive body in a business. This body is responsible for the company’s objectives and the decision-making processes. The board of directors is comprised of senior leaders who are appointed or elected by the members. The company’s constitution, bylaws and government regulations govern the board of directors’ authority and duties.

An executive committee is a smaller, more focused group that has close ties to the management. They are able to meet on short notice to discuss urgent issues that affect the company and then bring these issues 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. However, it may have a limited role.

The executive committee is generally comprised of three members including the chairperson, vice-chairperson and the treasurer. The chairperson also acts as the spokesperson for the company and ensures that all board and committee activities are aligned with its mission. The executive committee can also be a great option when the organization is looking to address issues that are repetitive or ideas that are controversial. This group can be utilized to approve www.boardroomsupply.com/flexibility-with-digital-data-room/ and vet the proposed ideas prior to being brought to the full board.

It’s crucial, however to ensure that the committee doesn’t assume decision-making power that is properly the responsibility of the board in general. Executive committees should have a clear charter, a clear process to delegate authority, and an internal system of checks and balances.