Document ID: chunk:federal_register_of_legislation:C2010C00237:clause:3_39
Version: federal_register_of_legislation:C2010C00237
Segment Type: clause
Provision Reference: sch 3 cl 39
Character Range: 50835–51695

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.