A board of directors is a group of individuals in an organization who oversees strategic plan and decision-making in line with their vision, goals, values, and mission. Boards are accountable for balancing the interests of shareholders while maintaining integrity, as well as making plans for the future of the company.
An executive committee is a section of the board that is responsible for urgent matters and functions as an instrument for the board. It typically consists of an executive secretary, treasurer vice-chairperson and chairperson. The chairperson is usually the leader of the committee. Often, they are the CEO The vice-chairperson assists the chairman, serves as a replacement for them when they’re not present and serves as a second-in command. The secretary is responsible for keeping minutes, maintains the committee’s calendar and makes sure all members have access to important documents.
A small group is a form of an executive committee. They are more flexible and can be able to meet with short notice in order to make decisions in an emergency situation. This allows the entire board to focus on larger issues in their regular meetings.
An executive committee can also handle a variety of routine issues and act as a substitute for the organisation in situations that the board is not required to be present, such as regular financial or legal procedures. It can also be used to examine controversial ideas and observe how the company handles them prior to bringing them to the full board. The committee shouldn’t be a second-tier power structure, and it’s recommended to board of directors have a clear delegated authority, as well as an internal set of checks and balances.