Yes. As you pointed out, the act does allow for all directors to be appointed. On the issue of director liability, the act does protect directors from incurring personal liability, as is the normal case in most corporate situations.
You asked about the ability of the government to direct the new entity. That's a direction-order power that exists in the current act. It has existed for quite some time. It exists in the Financial Administration Act, as well, and gives the government power to direct crown corporations.
It's generally used sparingly, but it does ensure that there is some corporate control by the government over the behaviour of crowns, and in this case, over the new board.