Executive Committee Vs Board of Directors
The board of directors is the high-ranking governing body for a company. This body spearheads the decisions and guides the company towards its goals. The board of directors consists of senior leaders who are elected or appointed by members. The board’s powers, duties and responsibility are defined by rules of the government and the company’s constitution and by-laws.
An executive committee is a smaller, more intimate group with close ties through the leadership who can be gathered on short notice to discuss pressing issues that affect the organisation and then bring them to the full board’s attention. The executive committee may have the same duties and responsibilities as the board, based on the organizational structure of the company as well as its bylaws.
The executive committee is usually made up of three members: the chairperson, the vice-chairperson, and the treasurer. The chairperson is also the spokesperson for the organization and ensures that all board and committee actions are in line with its mission. The executive committee can also be a good option when the organization has to quickly tackle repetitive matters or controversial ideas, as this group can be used to review and approve these issues prior to presenting them to the board in its entirety.
However, it’s crucial to ensure that the committee does not take on the power to make decisions that, according to bylaws belongs to the board in its entirety. Executive committees should have clearly defined chart of its purpose, a clear procedure for delegating authority and an internal system of checks and balances.
