92Initial directors

92 Initial directors

(1)  Subsection (2) does not apply to –

(a) a person who becomes the initial chief executive officer of a Government Business Enterprise; and

(b) a person who is a member of a statutory authority or its governing authority by reason of his or her position as a State service employee or Head of Agency.

(2)  If, immediately before the conversion day, a statutory authority that is to become a Government Business Enterprise specified in Part 1 of Schedule 1 comprises, or has a governing authority which comprises, persons all or some of whom are appointed by the Governor, a Minister of the Crown or another statutory authority, on the conversion day –

(a) each of the persons who comprised the statutory authority or its governing authority becomes a director of the Government Business Enterprise; and

(b) each of those persons is to be taken to have been appointed under section 11 (2) on the same conditions and terms (including leave and superannuation entitlements) as applied in respect of his or her appointment and service to that statutory authority or its governing authority for the remainder of the term of that appointment; and

(c) if one of those persons, immediately before that day, was the chairperson of that statutory authority or its governing authority or was performing functions of substantially the same nature as such a chairperson would perform, that person becomes the chairperson of the Board of the Government Business Enterprise.

(3)  If by the operation of subsection (2) (b) an initial director would be entitled to a term of office as initial director exceeding 3 years after the conversion day, that initial director –

(a) is taken to have been appointed under section 11 (2) for that 3 year period only; and

(b) is not entitled to receive any termination benefit in respect of the change in the term of appointment.

(4)  applies notwithstanding that, because of its operation, the Board of a Government Business Enterprise consists of a greater number of directors than is provided for by and under .