The report shows absolutely no acknowledgement (or understanding) of the concept that governance is about enabling all stakeholders, large and small, weak and strong, to have a say on key decisions affecting the institution and on the guiding principles that shape all action; and enabling them to do that through a variety of formal provisions and mechanisms. More importantly, the report shows no understanding that governance is about ensuring that no single stakeholder can hijack the institution by using unfair muscle, bullying or pressuring the management to do its bidding, in an “off the board” manner. Given the HRD ministry’s habit and track record of doing just this, any recommendations to improve governance should have included new ways to provide checks and balances to the HRD ministry, and force it to participate in governing the institution through the board.

Governance is about ensuring that the rule of law prevails — for example, making sure that the MOA between the government and other promoters of the institution is honoured and not repeatedly violated, even if the violator is the government.

This report recommends doing away with the good governance practices that the IIMs already have. Let us examine the current composition of the IIMA board as defined by the MOA, drafted by the likes of Vikram Sarabhai, and contrast it with what the report suggests. The present IIMA board composition allows for a variety of stakeholders to be represented and to have their say and their vote — the HRD ministry, AICTE, people like Magsaysay winner Elaben Bhatt who provide capitalism with the much needed social conscience, alumni , members of business and industry, chambers of commerce, and representatives of IIMA Society. IIMA Society is the co-promoter organisation of IIMA, and co-signatory to the MOA along with the government of India and the government of Gujerat. The IIMA society in turn has its own processes to decide who its nominees on the board should be. The MOA defines what decisions relating to the institution which will be taken how, and what the board composition logic is, and how the board seats get divided up.

... contd.