http://en.wikipedia.org/wiki/Summerhill_School

Summerhill School is an independent British boarding school that was founded in 1921 by Alexander Sutherland Neill with the belief that the school should be made to fit the child, rather than the other way around. It is run as ademocratic community; the running of the school is conducted in the school meetings, which anyone, staff or pupil, may attend, and at which everyone has an equal vote. These meetings serve as both a legislative and judicial body. Members of the community are free to do as they please, so long as their actions do not cause any harm to others, according to Neill’s principle “Freedom, not Licence.” This extends to the freedom for pupils to choose which lessons, if any, they attend.

Extracts :

Summerhill is noted for its philosophy that children learn best with freedom from coercion. All lessons are optional, and pupils are free to choose what to do with their time. Neill founded Summerhill with the belief that “the function of a child is to live his own life – not the life that his anxious parents think he should live, not a life according to the purpose of an educator who thinks he knows best.”

Although Neill was more concerned with the social development of children than their academic development, Summerhill nevertheless has some important differences in its approach to teaching. There is no concept of a “year” or “form” at Summerhill. Instead, children are placed according to their ability in a given subject. It is not uncommon for a single class to have pupils of widely varying ages, or for pupils as young as 13 or 14 to take GCSE examinations. This structure reflects a belief that children should progress at their own pace, rather than having to meet a set standard by a certain age.

There are also two classrooms which operate on a “drop-in” basis for all or part of the day, the workshop and the art room. Anyone can come to these classrooms and, with supervision, make just about anything. Children commonly play with wooden toys (usually swords or guns) they have made themselves, and much of the furniture and décor in the school has been likewise constructed by students.