The board of directors is the highest authority in a company’s. The board is responsible for the decision-making process, and steers the organization towards its objectives. The board of directors is made up of senior leaders who are elected or appointed by members. The corporate constitution, bylaws and regulations from the government regulate the board of directors’ authority, duties and responsibilities.

An executive committee is smaller, more focused group that is closely linked to the management. 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 www.boardroomsupply.com/tips-to-organize-an-efficient-online-board-meeting/ bylaws, the executive committee may have the same responsibilities as the board of directors. However, it could be tasked with a specific set of duties.

Typically the executive committee consists of the chairperson, vice-chairperson, and treasurer of the board. The chairperson also acts as the spokesperson of the organization and ensures that all board and committee actions are in line with its mission. The executive committee is an option if an organization requires quick action to tackle repetitive matters or controversial ideas, as this group is able to scrutinize and approve issues prior to presenting them to the board in its entirety.

However, it’s essential to ensure that the committee doesn’t take on decision-making authority that under the bylaws belongs to the full board. Executive committees should have an unambiguous charter, a clear process to delegate authority, and an internal system of checks and balances.