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Executive Committee Vs Board of Directors

The board of directors is considered to be the highest governing body in a business. The board is responsible for the decision-making process and guides the organization toward its goals. The board of directors is made up of senior leaders who are elected or appointed by members. The board’s powers, responsibilities and obligations are governed by the government regulations and the corporation’s constitution and by-laws.

An executive committee is smaller, more focused group that has close ties to the executive leadership. They may meet with a short notice to discuss urgent concerns that affect the business and then bring these matters to the attention of the board. The executive committee can have the same responsibilities as the board, depending on the organisation’s structure and its bylaws.

The executive committee is usually comprised of three people consisting of the chairperson, vice-chairperson and the treasurer. The chairperson also serves as the spokesperson and ensures all board and committee activities are in line with the organization’s mission. The executive committee is a good option when the organization needs to quickly deal with repetitive issues or controversial ideas, as this group can be used to examine and approve issues prior to presenting them to the full board.

It is crucial, however, to ensure that the committee does not assume decision-making powers that are properly the responsibility of the board in general. Executive committees must have a clearly defined charter, a system for delegating power and internal checks and balances.

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