A board of directors is a group of people who supervise strategic planning and decision-making in accordance with the company’s goals, vision, mission, and values. The Board of Directors is responsible for balancing the interests of shareholders, maintain integrity and plan for the future of an organization.
A subset of the board, the executive committee deals with urgent issues and serves as a steering mechanism for the board. It usually comprises three members: a chairperson, vice-chairperson secretary and treasurer. The chairperson usually is the chief executive officer and leader of the committee. the vice chairman assists the chairman and that site about The best virtual data room serves as their second in command when they are absent. The secretary manages the calendar of the committee and ensures that all members have access important documents.
By design the executive committee is usually a small group. They are more flexible, and they can meet at short notice to take decisions in an emergency. This allows the board to concentrate their meetings on more pressing issues.
A executive committee can also take on repetitive tasks and represent the company when the whole board isn’t required to be there, as in standard financial or legal procedures. It is also a way to test controversial ideas and determine how the organization responds to them before bringing it to the entire board. However, the committee should not be considered a second-tier structure of power and it’s recommended to have a clear delegated authority, as well as an internal set of checks and balances.