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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

The IAI wants to strengthen the accountability of its governance after members complain that Council decisions are opaque. Which of the following reforms best reflects good governance for a professional body while staying consistent with its statutory structure?

Good governance requires transparency and accountability, so publishing Council decisions and accounts to members and filling elected seats through elections as the statutory framework provides is the right reform. Unilateral amendment, hereditary seats or centralising power would weaken accountability.

  1. AAllowing the Council President to amend the regulations without any approval procedure
  2. BPublishing Council decisions and annual accounts to members and holding elections for elected Council seats as the framework providesCorrect
  3. CClosing all committees and transferring their functions to one paid executive
  4. DRemoving the examination and education functions from the Institute entirely
  5. Making membership of the Council hereditary among senior Fellows

Explanation

Transparency through published decisions and accounts, together with elections for elected seats, improves accountability. Unilateral rule-making, hereditary seats and concentrating power in one executive reduce accountability, and removing education functions would undermine the Institute's statutory role.

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