This paper reports on a study conducted in Georgia on the issues of the university sector to implement new strategic principles and standards devised by the National Center for Educational Quality Enhancement (NCEQE) for learning and teaching in higher education. This paper specifically considers the government's institutional relations concerning the quality of teaching and learning. This is done by borrowing the conceptual framing of the governance relationship of Government and institution provided by Principle Agency (PA) theory. The paper presents the results of the survey and follow-up interviews and concludes that institutions differ in approach, embracing both symbolic compliance and professional pragmatism in regard to the accreditation requirements. A discussion follows, embracing a principle agency interpretation of what the results might mean in practical and policy terms for governance and the development of the sector. It is accepted that learning and teaching is a challenging space for nearly all universities across the world but the Georgia example highlights the dynamics of change within the context of a post-Soviet country and the emerging practical problems this legacy creates. The research identifies some of these tensions between national systems and institutional readiness. The paper closes by offering recommendations for improvement.