A local government may approve a plan of amalgamation that amalgamates initial lots only if it is satisfied that—
(a) in the case of initial lots that are not within a residential precinct—the voting entitlement that is to apply to the new initial lot equals the total voting entitlement that applies to the initial lots being amalgamated; and
(b) in the case of initial lots that are within a residential precinct—the maximum number of lots into which the new initial lot may be subdivided equals the total of the maximum number of lots into which the initial lots being amalgamated could have been subdivided.