I would say that IF the moderator was an EMPLOYEE of the board owner, then the board owner certainly COULD set standards of conduct for the moderator and establish penalties for failure up to and including removal from the position of moderator...

In the case where the owner and the moderator are the same person, the person setting policy for "employees" is also the employee.

I have a friend who runs a small sole proprietorship. He jokes around and says, "My boss is an asshole... he never gives me a day off." Well... he IS his boss.