There is no one way of creating a happy and effective board.
A culture of open communication can help. For example, ensuring that all directors receive full briefing notes on all the issues to be considered well before any board meeting. Skilled directors often discuss potentially controversial issues with other directors before any formal board meeting. In this way, they aim to negotiate an agreement and reach a consensus.
An experienced chairman will know how to run a board meeting. For example, ensuring that directors stick to the agenda, limiting the time devoted to each item, and knowing when to put matters to a vote (or alternatively to postpone decisions for further discussions outside the meeting).
The board needs easy access to advice on any legal matters. One option is to ensure that an officer of the company has appropriate training and is present at all meetings, and to invite legal advisors to attend meetings where appropriate.
Directors are legally obliged to declare any potential conflict of interest, and must not use their position to make private profits at the company's expense. Suitable policies - requiring directors to declare conflicts and to abstain from votes where they may have a conflict - should be strictly enforced.
Consider introducing non-executive directors to the board. These individuals may bring a wealth of business and management experience with them, and ideally may present a fresh viewpoint, unfettered by personal interests.
