A board of directors is a set of people in an organization that manages strategic plan and decision-making in line with their goals, vision as well as their values and mission. The board is responsible to balance shareholders’ interests as well as maintaining integrity and planning for the future of the company.
An executive committee is a subset of the board, which is responsible for urgent matters and functions as a steering wheel for board. It is usually composed of three members: a treasurer, secretary, vice-chairperson, and a chairperson. The chairperson usually is the CEO and leader of the committee, whereas the vice chairman assists the chairman and serves as their second in command in the event of their absence. The secretary maintains minutes, maintains the committee’s calendar and makes sure everyone has access to important documents.
A small group is the design of an executive committee. They are more agile and are able to meet on short notice to make decisions in urgent situations. This allows the board to concentrate their meetings on more important issues.
An executive committee could also handle a variety of routine issues and stand in for the organization in instances in which the entire www.boardroomsupply.com/how-to-run-a-board-meeting/ board is not required to be present, for instance, the standard financial or legal procedures. It is also a way to examine controversial ideas and see how the organization handles them before making them available to the entire board. However, the committee should not be a second-tier power structure. It’s best to have clear delegation of power as well as an internal set of checks and balances.
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