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Govt notifies new IIM rules; President can now dissolve board of governors

The Union government has announced the new regulations, which state that the President will now be a “Visitor” at all Indian Institutes of Management (IIMs).

This gives the President the authority to name the governors’ chairperson, appoint and remove directors, and dissolve the board for failing to carry out its responsibilities, consistently failing to follow the “Visitor’s” directives, and acting in the public interest.

In July of this year, the Parliament passed the Indian Institutes of Management (Amendment) Rules, 2023, which aim to further amend the IIM Rules, 2018.

On November 11, the Union Ministry of Education published a gazetted notification outlining the new regulations’ terms and conditions.

The President of India, who currently serves as each IIM’s “Visitor,” will have the full authority to choose the chairperson of the board of governors, which is each IIM’s main executive body. In addition, the President may form search committees to find new directors, decide on policy, approve yearly budgets, and set fees.

A committee for search and selection was previously formed by the Board, with five distinguished individuals selected from a pool of administrators, industrialists, educators, scientists, technocrats, and management specialists.

According to the new guidelines, the Visitor will now be able to dissolve the board at any time for the following reasons: if the Visitor believes the board is incapable of carrying out its duties, if the board consistently fails to follow its directives under this Act, or if it is in the best interests of the public.

According to the notification, “The Visitor may, by order, dissolve the Board and appoint a person or persons as the Chairperson and members of an interim Board, as the case may be, for such period, not exceeding six months, and direct them to exercise powers and discharge functions under the Act.”

There had previously been no such provision for the Board’s dissolution.

As per the updated standards, the Visitor will have the final say in the appointment of the Director of any IIM.

“Where the Visitor is not satisfied with the names recommended by the Board, he or she may ask the Board to make fresh recommendations,” it continued. “The Visitor shall nominate one of the names recommended by the Board and send the same to the Board for appointment of the person as Director.”

However, the board was earlier solely responsible for the appointment of the Director. 

Now, the Visitor will also have the authority to fire the Director.

“Notwithstanding anything contained in any of the clauses of this sub-rule, if the Visitor decides that the services of the Director may be terminated or the Director may be relieved from the services of the Institute, the Board shall be bound to follow the decision of the Visitor,” the notification stated.

Under the IIM Rules of 2018, the board of governors alone had the power to remove the director with two thirds of the members present and voting and more than 50% of the members of the Board.

According to the notification, the new standards also clearly define the educational requirements for an IIM Director by substituting “distinguished academic with PhD or equivalent” with “distinguished academic with first class degree in both Bachelor’s and Master’s level, and with PhD or equivalent from a reputable institute.”

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Source: HT

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