A board of directors is a set of people in an organization that manages strategic planning and decision-making based on their vision, goals as well as their values and mission. Boards are responsible to balance shareholders’ interests while also ensuring integrity and planning for the future of the company.

An executive committee is a subset of the board that is responsible for urgent matters and functions as an instrument for the board. It usually consists of a secretary, treasurer, vice-chairperson, and a chairperson. The chairperson is the chief of the committee, and is often the CEO the vice-chairperson supports the chairman, and acts for them when they’re absent and acts as an assistant-in-command. The secretary records minutes, keeps the calendar of committee members and ensures all members have access to important documents.

A small group is the design of an executive committee. They are more flexible and can meet on short notice to make decisions in the event https://boardroomsupply.com/ of an emergency. This allows the full board to concentrate on more significant issues in their regular meetings.

A executive committee could also be responsible for repetitive tasks and act as a representative of the organization when the full board isn’t required to be there, as in normal financial or legal procedures. It can be used to test controversial ideas and to see how the organization responds to them before bringing it before the board. The committee shouldn’t be considered a second-tier power structure and it’s best to have clear delegated power as well as internal checks and checks and balances.