477Disclosure statement required

477 Disclosure statement required

(1) A special resolution of the local co-operative or participating co-operative is not effective for the purposes of this Part unless this section has been complied with.

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

(a) the financial position of the local co-operative and the participating co-operative as shown in financial statements that have been prepared as at a date that is not more than 6 months before the date of the statement;

(b) any interest that any officer of the local co-operative or the participating co-operative has in the proposed merger or transfer of engagements;

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

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

(e) in the case of a transfer of engagements—whether it is a total or partial transfer of engagements;

(f) in the case of a merger—whether the merged co-operative will result in a local co-operative or a co-operative under the co-operatives law of the participating jurisdiction concerned;

(g) any other information that the appropriate Registrar directs.

(3) The disclosure statement must be sent to the members of the local co-operative or participating co-operative so that it will in the ordinary course of post reach each member who is entitled to vote on the special resolution not later than:

(a) if the resolution is to be decided at a meeting—21 days before the date of the meeting; or

(b) if the resolution is to be decided by a postal ballot—21 days before the day on or before which the ballot papers must be returned by members voting in the ballot.

(4) The appropriate Registrar may exempt the local co-operative or participating co-operative from complying with this section.

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