It can be a challenge for an entire board of directors that has a variety of backgrounds and experience to make a decision on all the issues that require attention. A small, urgent issue can be addressed by an executive committee without waiting for an annual board meeting. Executive committees are not a substitute for the board and must work within the parameters of the delegation given by the board.
An executive committee, as the name suggests, is a tiny group of board members and senior see page https://boardroomsupply.com/the-best-virtual-data-room/ executives. officers who have the power to act in emergency situations on behalf of a full board. Typically the executive committee comprises the chairperson and vice-chairperson of board, along with other members of the board. It is possible for the board to designate chairs of the governance, finance and program development committees to the executive committee so long as the bylaws permit it.
The duties of an executive committee are to establish priorities that are to be resolved by the board in its entirety and provide feedback on regular basis to the CEO and other senior leaders, research emerging trends market trends, technologies and markets, manage workplace culture and change management and assess the CEO’s performance. The executive committee is responsible to a greater degree than the board, and must be able to take quick decisions in an emergency.
If the executive committee is becoming too reliant on its own deliberations or if a specific group is consistently favored over others, it is the right time to talk about how to restructure the board structure. Shaylyn King is a senior associate at Caveat that specializes in corporate and commercial law. She has an LLB (cum laude) from Wits University and was admitted to the Bar in 2008.