Section 9 in The Indian Institute of Management Act, 2017
Title: Institute to be not-for-profit legal entity
(1) Every Institute shall be a not-for-profit legal entity and no part of the surplus, if any, in revenue of such Institute, after meeting all expenditure in regard to its operations under this Act, shall be invested for any purpose other than for the growth and development of such Institute or for conducting research therein.
(2) Every Institute shall strive to raise funds for self-sufficiency and sustainability.
Title: Board of Governors
(1) The Board of Governors of each Institute shall be the principal executive body of that Institute.
(2) The Board of each Institute shall consist of the following members, namely:—
(a) a Chairperson, from amongst eminent persons distinguished in the field of industry or education or science or technology or management or public administration or such other field, to be appointed by the Board;
(b) one nominee of the Central Government having charge of the management education or his representative;
(c) one nominee of the respective State Government or representative of such nominees, within whose territorial jurisdiction the Institute is located;
(d) four eminent persons, of which at least one shall be a woman, distinguished in the field of education, industry, commerce, social service or public administration, to be nominated by the Board, having such experience and in such manner as may be specified by regulations;
(e) two members from the faculty of respective Institutes to be nominated by the Chairperson, in the manner to be laid down by the Board by regulations;
(f) one person from the Scheduled Castes or Scheduled Tribes to be nominated by the Board from amongst the members referred to in clauses (d), (e) and (g);
(g) up to five persons to be co-opted by the Board from the alumni or the members of society of the existing Institute who have distinguished themselves in the field of management:
Provided that out of such five persons, not more than one member shall be from the Society;
(h) three women members to be nominated by the Board from amongst the members referred to in clauses (d), (e) and (g);
(i) Director of the Institute, ex officio member.
(3) The Board may nominate a person to fill up any temporary vacancy, of a member referred to in clauses (d) and (g) of sub-section (2), for a period which may extend to three months.
(4) The Board shall designate an officer of the Institute to act as Secretary of the Board.
(5) The Chairperson shall have the power to invite any number of experts, not being members of the Board, to attend meetings of the Board, but such invitees shall not be entitled to vote at the meeting.
Title: Powers and functions of Board
(1) Subject to the provisions of this Act, the Board of every Institute shall be responsible for the general superintendence, direction and control of the affairs of the Institute and shall have the power to frame or amend or modify or rescind the regulations governing the affairs of the Institute to achieve the objects of the Institute specified in section 6.
(2) Without prejudice to the provisions of sub-section (1), the Board shall have the following powers, namely:—
(a) to take decisions on questions of policy relating to the administration and working of the Institute;
(b) to examine and approve the annual budget estimates of the Institute;
(c) to examine and approve the plan for development of the Institute and to identify sources of finance for implementation of the plan;
(d) to establish departments, faculties or schools of studies and initiate programmes or courses of study at the Institute;
(e) to set-up centres of management studies and allied areas within the country under intimation to the Central Government;
(f) to grant degrees, diplomas and other academic distinctions or titles, and to institute and award fellowships, scholarships, prizes and medals;
(g) to confer honorary degrees in such manner as may be specified by the regulations;
(h) to grant honorary awards and other distinctions;
(i) to create academic, administrative, technical and other posts and to make appointments thereto:
Provided that the cadre, the pay scales, allowances and term of employment of such posts shall be such as may be determined by the Central Government;
(j) to determine, by regulations, the number and emoluments of such posts and to define the duties and conditions of services of the academic, administrative, technical and other staff;
(k) to set-up centres of management studies and allied areas outside India in accordance with guidelines laid down by the Central Government from time to time and in accordance with the provisions of the laws for the time being in force in such foreign country;
(l) to pay, variable pay to the Director of the Institute on the basis of performance objectives as may be specified by the regulations;
(m) to specify by regulations, the fees to be charged for courses of study and examinations in the Institute;
(n) to specify by regulations the manner of formation of department of teaching;
(o) to specify by regulations the institution of fellowships, scholarships, exhibitions, medals and prizes;
(p) to specify by regulations the qualifications, classification, terms of office and method of appointment of the academic, administrative, technical and other staff of the Institute;
(q) to specify by regulations the constitution of pension, insurance and provident funds for the benefit of the academic, administrative, technical and other staff;
(r) to specify by regulations, the establishment and maintenance of buildings;
(s) to specify by regulations, the conditions of residence of students of the Institute and levying of fees for residence in the halls and hostels and of other charges;
(t) to specify by regulations, the manner of authentication of the orders and decisions of the Board;
(u) to specify by regulations, the quorum for meetings of the Board, the Academic Council or any Committee, and the procedures to be followed in the conduct of their business;
(v) to specify by regulations, the financial accountability of the Institute; and
(w) to exercise such other powers and perform such other duties as may be conferred or imposed upon it by this Act or the rules made thereunder.
(3) Subject to the provisions of this Act, the Board may by regulations, delegate such powers and functions of the Board to the Director as it may deem fit.
(4) The Board shall conduct an annual review of the performance of the Director, in the context of the achievements of objects of the Institute:
Provided that such review shall include performance reviews of faculty members of the Institute on such parameters, periodicity and terms of reference as may be determined by the Board.
(5) The Board shall, through an independent agency or group of experts, within a period of three years from the date of incorporation of the Institute, and thereafter at least once every three years, evaluate and review the performance of the Institutes, including its faculty, on the parameters of long term strategy and rolling plans of the Institutes and such other parameters as the Board may decide and the report of such review shall be placed in public domain.
(6) The qualifications, experience and the manner of selection of the independent agency or group of experts, referred to in sub-section (5), shall be such as may be specified by regulations.
(7) The report of the evaluation and review under sub-section (5) shall be submitted by the Board to the Central Government along with an action taken report thereon.
(8) Where in the opinion of the Chairperson or the Director the situation is so emergent that an immediate decision need to be taken in the interest of the Institute, the Chairperson, in consultation with the Director may issue such orders as may be necessary, recording the grounds for his opinion:
Provided that such orders shall be submitted for ratification by the Board in the next meeting.
(9) The Board shall in the exercise of its power and discharge of its functions under this Act, be accountable to the Central Government.
Title: Term of office of, vacancies among, and allowances payable to members of Board
(1) Save as otherwise provided in this section, the term of office of the Chairperson or any other member of the Board, other than an ex officio member, shall be four years from the date of his appointment or nomination:
Provided that the term of office of a member nominated under clause (e) of sub-section (2) of section 11 shall be two years from the date of his nomination:
Provided further that the Chairperson, or any other member of the Board, other than an ex officio member, may be appointed or nominated for a second term:
Provided also that the Chairperson or any other member of the Board, other than an ex officio member, shall not be appointed or nominated for more than two consecutive terms.
(2) The term of office of an ex officio member shall continue so long as he holds the office by virtue of which he is a member of the Board.
(3) A member of the Board, other than a nominee of the Central Government or the State Government, who fails to attend three consecutive meetings of the Board without permission of the Chairperson, shall cease to be a member of the Board.
(4) A casual vacancy of a member shall be filled up in accordance with the provisions of section 10.
(5) The term of office of a member nominated to fill a casual vacancy shall continue for the remainder of the term of the member in whose place he has been so nominated.
(6) Members of the Board shall be entitled to such allowances, as may be specified in the regulations, for attending meetings of the Board.
(7) The Board shall meet at least once in every three months.
Title: Resignation of Chairperson
The Chairperson may, by notice in writing under his hand addressed to the Board, resign from his office.