This document examines the implementation of the Schools Act, which established the democratic governing bodies and the school governance, capacity-building program in KwaZulu-Natal. It is based on a study that: (1) recorded the existence/nonexistence of governing bodies and compiled a profile of the average governing body based on a sample of schools; (2) examined the processes that were followed in setting up school governing bodies in public schools in KwaZulu-Natal; (3) identified problems that arose while establishing governing bodies; and (4) evaluated the immediate/short-term impact and effectiveness of governing body structures in public schools, including the extent to which capacity-building programs were in place. Numerous questions guided the research: To what extent have school governing bodies been established and who are the members? What constraining factors and challenges confronted school principals in the establishment of the first democratic governing bodies? What are stakeholders' perceptions of their roles in school governing bodies? and To what extent are capacity-building programs available and in use? To gather data, two research methods were used: case studies and a survey questionnaire. Included in the findings was the discovery that, in 98 percent of schools, the principal acted as the electoral officer as prescribed by the department. (Contains 23 references. Appendices include interview guides and a survey questionnaire.) (RJM)