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Executive Committee Vs Board of Directors

A board of directors is an organization’s group of directors who manage strategic planning and take decisions according to the company’s mission vision, mission, and values. The board is accountable for balancing shareholder interests, ensure integrity, and plan for the future of an organization.

A subset of an executive committee is responsible for urgent matters and acts as a steering committee https://boardroomsupply.com/flexibility-with-digital-data-room/ for the board. It is typically comprised of the chairperson, vice-chairperson, secretary and treasurer. The chairperson is usually the CEO and leader of the committee, while the vice chairman assists the chairman and serves as their second in command when they are away. The secretary keeps track of the committee’s calendar and ensures that all members have access to important documents.

A small group is the basis of an executive committee. They are more flexible and can meet with short notice to make decisions in the event of an emergency. This allows the board to focus their meetings on more important issues.

An executive committee can be able to handle many routine matters and act as a substitute for the company in situations that the board is not required to be present, for instance, regular financial or legal procedures. It is also a way to vet controversial ideas and see how the company handles them prior to taking them to the full board. The committee shouldn’t be an additional power structure. It is important to establish clear delegated of authority as well as internal checks and balances.

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