My experience is that students establish the rules they wish to be governed by, have committees that mete out punishment for rule-breakers, etc. They take it very seriously and sometimes are much tougher than faculty would be. Not only does it make for a happier school, but develops leadership skills as well.
Students are often more aware of disfunctional lives than faculty members can be.
I am out of date, but the high schools in Brookline, MA and Hanover, NH used to operate this way and may still.