Since the Enron scandal in 2001 and the financial crisis in 2008, the apparent lack of effectiveness of boards has been the core of heated debates. As a consequence many new regulatory systems have been put into place to control decision making by corporate boards to avoid more corporate problems. However, ongoing corporate scandals and public discussions about board remuneration decisions illustrate that, despite increased regulation, boards are still not always effective in managing their organizations.Therefore, identifying the conditions under which boards thrive remains an important question. The central aim of this signature area is to examine the conditions that will make boards effective. We will generate valuable knowledge on why boards are not always effective in meeting shareholder demands, and which conditions will help them to improve their functioning.