Finally, theIndian Institute of Management - Ahmedabad (IIM-A) won its battle for sovereignty, with HRD Minister Kapil Sibal. Now, the institute reserves rights to make amendments to the institution’s Memorandum of Association (MOA) with the government.
As per sources, the alterations that conclude the government’s authority to choose director of the country’s top business school and give it unparalleled economic sovereignty follows a decade-long clash between the institute and successive governments. However, this has come to an end with the institute’s reserving the rights.
Presently, the directors are short-listed by a search-cum-selection committee constituted by the government in collaboration with the IIM’s board of governors. This gives the government the chance to influence the selection of the candidates.
Sources have informed that the amended MOA, which has now been sent to the law ministry for selection before a notification is released, totally eradicates the government's function in the process of short-listing candidates for the director's post. Now, the boards will shortlist three candidates, while the government can choose only one from those names.
Furthermore, the amendment will entrust IIM -A with the authority to purchase sell assets without seeking the government's consent. This will, in turn, put an end to all sort of formalities that delay key achievements and investments planned by the IIM.
In addition, the HRD ministry has also approved the proposal to increase the revenue generated for the IIM through membership of its funding society. IIM can now claim bulky donations in exchange for membership of the society.
Earlier, this proposal raised apprehension because some people might benefit from as well influence over the board of governors merely by buying society membership. Therefore, the HRD Minister had advised the IIM to put the proposal on hold.
However, later on, IIM convinced the government that only two nominees of the society will be the offered membership of the board. Also, industrialists or individuals who join the society won’t be in a position to influence key decisions.
