396Requirements before application can be made

396 Requirements before application can be made

396 Requirements before application can be made

(1) Before co-operatives can apply for approval under this Division of a merger or transfer of engagements, the proposed merger or transfer must have been approved by each of the co-operatives by—

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

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

(2) The proposed merger or transfer of engagements may be approved by resolution of the board of a co-operative if the Registrar consents to the procedure applying in the particular case.