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Private universities play an important role in Taiwan’s higher education. However, the relationship between the board of trustees and the university president and its impact on private university development is seldom examined. This paper examines current power structure of private university governance and its impact on higher education quality via semi-structured interviews. Research findings show that the board of trustees are diverse in their composition, intention, and governing ability. The source of their power and their interaction with the university president are analyzed. Impact on higher education development is discussed. Differences between Taiwan and U.S. in private university governance are compared for reflection.