This study considers the features and issues of the English system of the Foundation Schools introduced by the School Standards and Framework Act of 1998. In order to carry out their education policy under the principal 'the Third Way', the New Labor Party created a policy which could effectively comprehend the activities of the central government, private sector, local authorities, and voluntary sector. Governors of foundation schools carry out the policy's specifications in very much the same manner as id seen with Grant Maintained Schools. The election standard of governors in the governing bodies is diverse. Grants for the Foundation Schools come from the Department for Education and Employment (DfEE) and are distributed by Local Education Authorities (LEAs) instead of the Funding Agency for Schools. Opinions of Education professionals and lay inspectors are reflected on the school evaluations, and inspectors of the Office for Standards in Education (OFSTED) carry great influence in the decisions of the governing bodies. In this way, opinions from any source with respect to the system of the Foundation Schools are taken into consideration, while the autonomy and independence at the school field are respected. However, the following issues remain in need of attention : 1. How to promote the democratic participation of people in local areas 2. How to include the thoughts and voices of students and parents in OFSTED evaluations of the schools' achievements.