The President of India who is now the “Visitor” of each IIM, will have complete power to nominate the chairperson of the board of governors
Agencies/JK News Today
The Union government has notified the new rules under which the President will now be a “Visitor” at all Indian Institutes of Management (IIMs), with powers to appoint the chairperson of the board of governors, the appointment and removal of the directors, and dissolving the board for its inability to perform its duties, persistently defaulted in complying with any direction given by the “Visitor”, and in public interest.
The Indian Institutes of Management (Amendment) Rules, 2023, which has been brought to further amend the IIM Rules, 2018, were passed in the Parliament in July this year.
The Union ministry of education notified the new rules in a gazetted notification on November 11 specifying the terms and conditions.
The President of India who is now the “Visitor” of each IIM, will have complete power to nominate the chairperson of the board of governors— the principal executive body of each IIM, and has the power to appoint search panels for appointments of new directors, take policy decisions, approve annual budgets and determine fees.
Earlier, a search-cum-selection committee comprising five eminent persons were chosen from amongst administrators, industrialists, educationists, scientists, technocrats and management specialists to be constituted by the Board for the same.
Under the new norms, the Visitor will now have the power to dissolve the board, at any time, under three circumstances –if the visitor is of the opinion that the board is unable to discharge the functions, is persistently defaulted in complying with any direction given by the Visitor under this Act, and in the public interest.
“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,” the notification stated.
Earlier, no such clause for the dissolution of the Board was there.
According to the new norms, the Visitor will have the final say in the appointment of the Director of any IIM.
“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: Provided that 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 added.
However, the board was earlier solely responsible for the appointment of the Director.
The Visitor will now also have the power to terminate the services of 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.
The new norms also firmly establish the educational qualifications of an IIM Director by replacing “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 reputed institute”, according to the notification.
