The section the member is referring to is very similar to what the current arrangement is between the government and the Wheat Board, whereby the government can provide direction to the board on the way they conduct their business. The “section 16” reference is about conducting business in good faith, with the normal due diligence and prudence. But the subsection you read out that talks about not being held liable is really to say to the directors: “You are following a government order in this respect. It is deemed to be in the interests of the corporation; therefore you wouldn't be held liable by a private lawsuit or some such legal intervention from following the order.” This is not terribly different from the current situation.
On November 1st, 2011. See this statement in context.