8. (1) The Board shall consist of a Chairman and not more than four other Directors to be appointed by the Government:

Provided that when there are shareholders other than the Government, such shareholders shall elect, in such manner as may be prescribed, from amongst themselves-

(a) one Director when the number of shares subscribed for by them exceeds twenty per cent. but does not exceed thirty-four per cent. of the total shares;

(b) two Directors when the number of shares subscribed for by them exceeds thirty-four per cent. of the total shares;

Provided further that till such time as the Board is fully constituted, the Chairman shall exercise the powers, perform the functions and discharge the duties of the Corporation.

(2) No act or proceeding of the Board shall be invalid merely on the ground of existence of any vacancy in, or any defect in the constitution of, the Board.