(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.