COLLEGES AND UNIVERSITIES ARE CORPORATIONS GOVERNED BY BOARDS OF TRUSTEES. SOME ARE PUBLIC, AND OTHERS ARE PRIVATE, NONPROFIT CORPORATIONS. BOARDS ARE USUALLY COMPOSED OF LAY PERSONNEL, ASSUMED TO BE REPRESENTATIVE OF THE PUBLIC WHO ARE INTERESTED IN THE WELFARE OF THE INSTITUTION. LEGALLY, THE BOARD HAS COMPLETE AUTHORITY AND RESPONSIBILITY FOR THE INSTITUTION, ALTHOUGH IN PRACTICE MUCH OF ITS AUTHORITY IS DELEGATED TO THE OFFICERS AND FACULTY. THE FACULTY LARGELY DETERMINES THE PROGRAM AND EDUCATIONAL STANDARDS, WHILE THE TRUSTEES ARE RESPONSIBLE FOR ADEQUACY OF THE PLANT, DETERMINATION OF OVERALL POLICIES, SELECTION OF A PRESIDENT, AND ADEQUATE FINANCING. AS THE BOARD'S EXECUTIVE OFFICER, THE PRESIDENT SERVES IN A LIAISON CAPACITY WITH THE FACULTY AND BOARD. THE LAY BOARD AS FOUND IN THE UNITED STATES IS UNIQUE IN HIGHER EDUCATION. ITS ADVANTAGES ARE IN INVOVEMENT OF REPRESENTATIVES OF THE PUBLIC IN POLICY FORMATION, OVERSEEING MANAGEMENT OF THE INSTITUTION, AND ASSISTING IN ADEQUATE FINANCIAL SUPPORT. THE SYSTEM IS CRITICIZED BECAUSE OF LACK OF EDUCATORS ON THE BOARDS AND A PREPONDERANCE OF MEMBERS OF THE HIGH SOCIOECONOMIC CLASSES. IN SPITE OF THE IMPORTANCE OF THE GOVERNING BOARD, ITS ROLE IS NOT COMMONLY UNDERSTOOD BY THE PARTIES INVOLVED. THIS DOCUMENT IS VOLUME 10, NUMBER 2 OF "AGB REPORTS" FOR OCTOBER 1967, A PUBLICATION OF THE ASSOCIATION OF GOVERNING BOARDS OF UNIVERSITIES AND COLLEGES. (AUTHOR/WO)