THE AUTHORITIES OF INSTITUTESCentral

Section 11 of The Indian Institute of Management Act, 2017

(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:—
1. (a)to take decisions on questions of policy relating to the administration and working of the Institute;
2. (b)to examine and approve the annual budget estimates of the Institute;
3. (c)to examine and approve the plan for development of the Institute and to identify sources of finance for implementation of the plan;
4. (d)to establish departments, faculties or schools of studies and initiate programmes or courses of study at the Institute;
5. (e)to set-up centres of management studies and allied areas within the country under intimation to the Central Government;
6. (f)to grant degrees, diplomas and other academic distinctions or titles, and to institute and award fellowships, scholarships, prizes and medals;
7. (g)to confer honorary degrees in such manner as may be specified by the regulations;
8. (h)to grant honorary awards and other distinctions;
  1. (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;
9. (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;
10. (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;
11. (l)to pay, variable pay to the Director of the Institute on the basis of performance objectives as may be specified by the regulations;
12. (m)to specify by regulations, the fees to be charged for courses of study and examinations in the Institute;
13. (n)to specify by regulations the manner of formation of department of teaching;
14. (o)to specify by regulations the institution of fellowships, scholarships, exhibitions, medals and prizes;
15. (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;
16. (q)to specify by regulations the constitution of pension, insurance and provident funds for the benefit of the academic, administrative, technical and other staff;
17. (r)to specify by regulations, the establishment and maintenance of buildings;
18. (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;
19. (t)to specify by regulations, the manner of authentication of the orders and decisions of the Board;
20. (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;
  1. (v)to specify by regulations, the financial accountability of the Institute; and
21. (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.

Summary

The Board is responsible for the overall supervision, direction, and control of the Institute.
The Board makes and changes the regulations that govern the school to help meet the goals (objects) listed in Section 6.
Key duties include approving the annual budget, identifying money for expansion, and creating new departments or schools.
The Board sets student fees, determines staff pay (based on government scales), and grants degrees.
The Board must review the performance of the Director every year and the whole Institute every three years.
The Board is legally accountable to the Central Government for how it runs the school.

Practical examples

1In January 2026, the IIM Lucknow Board reviews the "Section 6 objects" and decides to launch a new department for Social Sector Management to help "support leaders in the social sector."

2Because of an urgent fire safety issue on December 20, 2025, the Chairperson and Director of IIM Indore approve an immediate 50 lakh rupee repair, which the Board ratifies at their next meeting.

3Following the three-year rule, the Board of IIM Udaipur hires an independent group of experts in 2026 to evaluate if their teaching methods are meeting "global excellence" standards.

FAQ

1. Who decides how much the professors are paid?

The Board creates the posts and appointments, but the pay scales and allowances are determined by the Central Government.

2. Can an IIM open a campus in a foreign country?

Yes, the Board can set up centers outside India, but they must follow Central Government guidelines and the laws of that foreign country.

3. How often is the school's performance reviewed?

The Board must have an independent agency review the Institute's performance every three years and put the report online for the public.

4. Can the Director make big decisions alone?

The Board can delegate certain powers to the Director, but the Board remains responsible for general superintendence.

5. Does the public get to see the performance review?

Yes, the report of the three-year evaluation must be placed in the public domain.

Test yourself

Q1.Under Section 11 of The Indian Institute of Management Act, 2017, the Board must frame regulations to achieve the objects in Section 6. If the Board refuses to fund research into "equitable and sustainable national development" (a Section 6 object), which statement is correct?

Q2.According to Section 11 of The Indian Institute of Management Act, 2017, what must happen if the Chairperson makes an "emergent" (urgent) decision in the interest of the Institute?

Q3.Under Section 11 of The Indian Institute of Management Act, 2017, how often must the Board conduct an evaluation of the Institute's performance through an independent agency?

Q4.Under Section 11 of The Indian Institute of Management Act, 2017, which body is the Board of Governors accountable to for its functions?

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