This Subdivision applies in relation to a public company if its constitution allows its directors to set a limit (a board limit) whose effect is to restrict the number of directors of the company to a number less than the maximum number of directors specified in the constitution.
Note: This Subdivision applies however the constitution or board limit is expressed.
If a company's constitution provides that the maximum number of directors is either a specified number or another number determined by the directors:
(a) any number determined by the directors that is lower than the specified number is a board limit; and
(b) any lowering by the directors of that lower number is also a board limit.
Subsection (2) does not limit, and is not limited by, subsection (1).