The board of directors is the high-ranking governing body for a company. The board is accountable for the organization's goals and the decision-making process. The board of directors is comprised of senior leaders who are appointed or elected by the members. The board's powers, duties and obligations are governed by the laws and regulations of the government as well as the corporation's constitution and by-laws.

An executive committee is smaller, more focused group with close ties to the management. They may meet with a short notice to discuss urgent concerns that affect the business and then bring the issue to the attention of the entire board. The executive committee may have the same responsibilities as the board, based on the structure of the company and its bylaws.

The executive committee is typically comprised of three people comprising the chairperson, the vice-chairperson, and the treasurer. The chairperson also acts as the spokesperson, and ensures https://boardroomsupply.com/how-to-run-a-board-meeting/ that all actions of the board and committees are aligned with the mission of the organization. The executive committee can also be an ideal option when an organization requires quick action to take on recurring issues 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 doesn't have the decision-making power that according to the bylaws should be a part of the board in its entirety. An executive committee should have a clearly defined chart, a method for delegating power, and internal checks and balances.