A board of directors is an organization’s group of digital data room individuals that oversee strategic planning and decisions according to the company’s mission, vision, mission, and values. Boards are responsible to balance the interests of shareholders, maintain integrity, and plan for the future of an organization.

A subset of the board, the executive committee is responsible for urgent matters and acts as a steering mechanism for the board. It usually consists of three members: a chairperson, vice-chairperson secretary and treasurer. The chairperson is usually the leader of the committee, and is often the CEO the vice-chairperson supports the chairman, serves as a replacement for them when they’re absent and acts as the second-in-command. The secretary manages the calendar of the committee and ensures that all members have access important documents.

By design, an executive committee is a smaller group. They are more flexible, and they can meet at short notice to take decisions in an emergency situation. This lets the board focus their meetings on more important issues.

An executive committee may also be able to handle many routine matters and act as a substitute for the organization in situations in which the entire board is not required to be present, like regular financial or legal procedures. It is also a way to examine controversial ideas and determine how the company handles them prior to bringing them to the full board. The committee shouldn’t be a secondary power structure. It is important to have a clear delegation of responsibility as well as internal checks and checks and balances.