A board of directors is an organization’s group of individuals that supervise strategic planning and decision-making in accordance with the company’s goals and vision, mission and values. The board is responsible to balance shareholders’ interests while also ensuring integrity and planning for the future of the company.
An executive committee is a section of the board, which is responsible for urgent matters and acts as an instrument for the board. It is usually composed of three members: a treasurer, secretary, vice-chairperson and chairperson. The chairperson is often the chief executive officer and leader of the committee. the vice chairman assists the chairman and acts as their second in command when they are absent. The secretary maintains minutes, manages the calendar of the committee and ensures all members have access to https://boardroomsupply.com/the-best-virtual-data-room/ important documents.
A small group is the basis of an executive committee. They are more flexible and can meet on short notice to make decisions in the event of an emergency. This allows the entire board to concentrate on more significant issues in their regular meetings.
A committee of the executive can also take on routine tasks and represent the organization when the full board isn’t present, such as in legal or financial procedures. It is a great way to test controversial ideas and see how the organization responds to them before bringing it before the board. The committee should not be a secondary power structure. It is important to have a clear delegation of authority and internal checks and balances.
