Reliance Industries Limited (RIL) head Mukesh Ambani has decided to set up a five-member committee to address internal and external governance issues for all Indian Institutes of Management (IIMs).
Being the chairman of IIM-B board of governors, Mukesh Amabani has had to deal will much debate over IIM society membership norms. A five-member committee headed by IIM-Ranchi board chairman R C Bharvaga had recommended collection of substantial donations from corporate institutions and alumni in order to be appointed as members of the IIM society. The panel had suggested that corporate and similar institutions could donate Rs. 20 crore and become members of the IIM society while the donation amount for individuals was fixed at Rs. 5 crore and Rs. 3 crore for alumni.
This proposition was opposed by many of the IIM faculty members who claimed that such an act would border on ‘sale’ of society seats. According to some, the trade like facet of membership norms does not garner well with the perceived prescripts and standards of purpose of the any of the IIM institutes and hence, a reform is called for in the present overture of society membership model.
In order to tackle the fencing state of situation, Mukesh Ambani has suggested that a new committee be formed headed by retired ITC chairman K L Chugh alongside Biocon chief Kiran Mazumdar Shaw, KIIT University vice-chancellor A S Kolaskar and MindTree vice-chairman Subroto Bagchi, as associate members.
This new committee will look into the matter to determine whether the present protocol needs to be altered or not and whether a complete overhaul of perspectives is required so that it hones well with the perceived etiquettes of IIM as an institution. Previous committee had advocated its stand by saying that the society should function as an ‘enlightened owner’ for which substantial donations are called for. The new panel will be required approach this thought with dual point of consideration and act resolutely so as to not to harm the touchstones of the prestigious society sect while keeping the sentiments of faculty members in mind.
IIM-B faculty will meet on January 20 to discuss the Bhargava committee recommendations.