This study explores the role of the board of directors in corporate strategic decision-making in Australia. In particular, it investigates the association between board composition and corporate diversification. Based on a random sample of 101 Australian publicly listed firms for the financial year ended 2005, this study finds that board composition (in terms of inside and outside directors) is not associated with corporate decisions on product and/or geographic diversification. A similar result is found for boards with more interlocking directors and institutional representatives. A number of implications on corporate governance are drawn from these findings.