476Requirements before application can be made

476 Requirements before application can be made

(1) Before a local co-operative and a participating co-operative can apply for approval under this Part of a merger or transfer of engagements, the proposed merger or transfer must have been approved by each of the co-operatives:

(a) by a special resolution passed by special postal ballot; or

(b) if permitted by subsection (2), by a special resolution, or by a resolution of the board, of the co-operative.

(2) The proposed merger or transfer of engagements may be approved by special resolution, or by resolution of the board, of the co-operative if:

(a) the local Registrar consents to that procedure applying in the particular case; and

(b) the participating Registrar also consents to that procedure applying in the particular case.

(3) A consent referred to in subsection (2) may be granted subject to conditions, including any condition that a disclosure statement be provided to members or directors.

(4) A co-operative that contravenes a condition of a consent is taken not to have been given consent.