Corporations (Aboriginal and Torres Strait Islander) Consequential, Transitional and Other Measures Act 2006 (125 of 2006)

Schedule 3   Transitional provisions

Part 2   Bringing transitional corporations across to new system

Division 6   Directors

39   Majority of director requirements - employees

(1) This item applies if, at commencement:

(a) one or more of a transitional corporation's directors are employees of the corporation (the employee appointees ); and

(b) the employee appointees are a majority of the corporation's directors.

(2) Until the employee appointees no longer constitute a majority of the corporation's directors:

(a) subsection 246-5(4) of the new Act does not apply in relation to the corporation; and

(b) only persons who are not employees of the corporation can become directors of the corporation.

(3) For the purposes of this item, a person ceases to be an employee appointee if the person:

(a) ceases to be a director of the transitional corporation (whether or not the person is immediately reappointed); or

(b) ceases to be an employee of the transitional corporation.