What is the basis of your interpretation. There is no suggestion in that Act of a need to imply any interpretation of 'to hold office' other than a literal one? You hold office from the time the result of a poll is declared until you resign, are sacked, or until the start of the next AGM (when all positions are spilled). At any given time, the people who 'hold office' are the current directors. If the intention of the Act was to prohibit employees (or personal services contractors as I suspect this case really is) it would include this. Ben Smith's behaviour is perfectly consistent with being informed of the content s.30 of the Act and then giving notice. I note that the club's statement makes no reference to who made this deliberation (i.e. they do not quote or reference the returning officer or the advice of the returning officer).
I'll say it again, this is childish stuff. Neither the Constitution or the Act prohibit Smith from standing for election. I'm all for the current Board staying on, I think they are doing a pretty fair job, but that doesn't mean I like everything they do