New Guidelines for IIM Director Appointments

The central government has recently issued fresh guidelines for the selection of directors at Indian Institutes of Management (IIMs). These guidelines bring significant changes to the qualifications required for IIM director appointments and grant enhanced authority to the President as the “visitor” to these prestigious business schools.

Key Changes

Stricter Educational Qualifications

Under the new guidelines, candidates aspiring to become IIM directors must meet stricter educational qualifications. A “distinguished” academic record is now mandatory, which includes holding a first-class degree in both Bachelor’s and Master’s levels, in addition to possessing a PhD or its equivalent from a reputable institution. This marks a departure from the previous qualifications, which only required a “distinguished academic record with a PhD or equivalent.”

Presidential Authority as the “Visitor”

The most significant change is the enhanced authority granted to the President, who will now serve as the “visitor” to the IIMs. This designation empowers the President with various key responsibilities:

1. Appointing the Chairperson of the Board of Governors.
2. Appointing and Removing Directors.
3. Dissolving the Board in Case of Neglect of Duties or Disobedience of the Visitor’s Instructions by Any Board Member.

Ultimate Decision-Making Power

The new regulations bestow the visitor with the ultimate decision-making power in the appointment of IIM directors. While the board can recommend names, the visitor has the authority to nominate one of the recommended candidates for appointment. If the visitor is dissatisfied with the board’s recommendations, they can request fresh recommendations or even a new panel of names.

Shift from Board’s Purview

Previously, the director’s appointment was entirely within the purview of the board. However, the new guidelines significantly diminish the board’s role in the selection process.

Reintroduction of the Visitor Concept

The concept of the visitor’s authority in IIMs was initially introduced in the 2015 draft of the current act but faced opposition from IIMs, who were concerned about potential threats to their autonomy. Consequently, this provision was omitted from the final bill. Its reintroduction now marks a substantial change in the governance structure of IIMs.

Dissolving the Board

Under the new regulations, the visitor has the power to dissolve the board under three circumstances:

1. If the board is deemed incapable of fulfilling its functions.
2. If it consistently fails to comply with directives issued by the Visitor according to this Act.
3. In Cases of Public Interest.

Month: Current Affairs - November, 2023

Category: India Nation & States Current Affairs