The board of directors is the highest the governing body of a business. This body is the primary decision-making process, and steers the organization towards new post here boardroomsupply.com its objectives. The board of directors is composed of top leaders which are typically appointed or elected by the members. The board’s authority, duties and responsibility are defined by corporate regulations as well as by the law of the land. constitution and by-laws.

An executive committee is an enlightened, smaller group that has close ties to the executive. They are able to meet on short notice to discuss urgent issues that affect the company and then bring the issues to the attention of the entire board. Based on the structure of the company and bylaws, the executive committee may be able to perform the same duties as the board of directors, or it could have a smaller role.

Typically, the executive committee is made up of the chairperson, vice-chairperson, and treasurer of the board. The chairperson also serves as the spokesperson and ensures all actions of the board and committees are aligned with the company’s goals. The executive committee can also be a great option when the organization is looking to address issues that are repetitive or controversial ideas. This group is utilized to approve and vet the issues before they are discussed with the board.

It’s important, however, to ensure that the committee doesn’t take on decision-making authority that is properly the responsibility of the entire board. Executive committees should have an unambiguous charter, a clear process to delegate authority, and an internal set of checks and balances.