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Executive Committee Vs Board of Directors

A board of directors is a group of people in an organization that is responsible for strategic plan and decision-making in line with their goals, vision values, mission, and values. Boards are responsible for balancing the interests of shareholders while also ensuring integrity and making plans for the future of the company.

An executive committee is a section of the board that handles urgent matters and functions as a steering wheel for board. It typically consists of the secretary, treasurer, vice-chairperson and chairperson. The chairperson is the chief of the committee. Often, they are the CEO the vice-chairperson supports the chairman, acts as a substitute for them when they are not present and acts as a second-in-command. The secretary maintains minutes, maintains the committee calendar and ensures that all members have access to important documents.

By design, an executive committee is usually a small group. They are more flexible and be able to meet with short notice in order to take decision in an emergency. This lets the board focus their meetings on more important issues.

An executive committee can also be able to handle many routine matters and stand in for the organisation in situations that the board is not required to be present, such as standard legal or financial procedures. It is a great way to test controversial ideas and to determine how the organization responds to them before presenting it before the board. The committee should not function as an additional power structure. It is important to have a clear delegation of authority and internal checks and checks and balances.

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