(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 means of 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 that procedure applying in the
particular case.