397Disclosure statement required

397 Disclosure statement required

(1) A resolution of a co-operative is not effective for the purposes of this Division unless this section has been complied with.

(2) Each co-operative must send to each of its members a disclosure statement approved by the Registrar stating:

(a) the financial position of each co-operative concerned in the proposed merger or transfer of engagements as shown in financial statements prepared as at a date not more than 6 months before the date of the statement; and

(b) any interest any officer of each co-operative has in the proposed merger or transfer of engagements; and

(c) compensation or other consideration proposed to be paid, or other incentive proposed to be given, to any officer or member of each co-operative in relation to the proposed merger or transfer of engagements; and

(d) whether the proposal is a merger or transfer of engagements and the reason for the merger or transfer of engagements; and

(e) for a transfer of engagements—whether it is a total or partial transfer of engagements; and

(f) other information the Registrar directs.

(3) The disclosure statement must be sent to the members of each co-operative so that it will, in the ordinary course of post, reach each member who is entitled to vote on the special resolution no later than 21 days before the day on or before which the ballot papers must be returned by members voting in the special postal ballot.

(4) The Registrar may, by designated instrument, exempt a co-operative from complying with this section.

(5) The Registrar may give an approval or an exemption under this section unconditionally or subject to conditions.