A board of directors is a group of individuals in an organization that oversees strategic planning and decision-making based on their goals, vision values, mission, and values. Boards are accountable to balance shareholders’ interests while also ensuring integrity and planning for the future of the organization.
A subset of an executive committee is responsible for urgent matters and serves as a steering mechanism for the board. It is typically comprised of three members: a chairperson, vice-chairperson secretary and treasurer. The chairperson is usually the CEO and leader of the committee. the vice chairman assists the chairman and acts as their second in command when they are away. The secretary is responsible for keeping minutes, keeps the calendar of the committee and ensures that all members have access to important documents.
By design the executive committee is usually a small group. They are more agile and can meet on short notice to make decisions in emergencies. This allows the whole board to concentrate on more important issues in their periodic meetings.
A executive committee could also take on repetitive tasks and act as a representative of the organization when the entire board isn’t there, as in normal legal or financial procedures. It is also a way to test controversial ideas and observe how the organization reacts to them before bringing it to the full board. The committee should not function as an additional power structure. It is essential to have a clear and precise delegate of responsibility as well as internal checks and balances.