0936211399 HOTLINE A board of directors is an organization’s group of individuals that oversee strategic planning and make decisions according to the company’s mission as well as its vision, mission and values. The board is responsible for balancing the interests of shareholders as well as maintaining integrity and making plans for the future of the business.
An executive committee is a section 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 head of the committee and usually the CEO and vice-chairperson assists the chairman, acts as a substitute for them when they are not present, and acts as a second-in command. The secretary maintains the committee’s calendar and ensures that all members have access to important documents.
A small group is a form of an executive committee. They are more agile and can meet on short notice to take decisions in emergency situations. This allows the board to concentrate their meetings on more important issues.
A executive committee could also handle repetitive tasks and act as a representative of the organization when the full board isn’t required to be present, as is the case with standard legal or financial procedures. It is also a way to review controversial ideas and determine how the organization handles them before taking them to the full board. However, the committee shouldn’t be considered a second-tier power structure and it’s an ideal idea to have clear delegation of power as well as internal checks and balances.
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