55. The chief electoral officer shall refuse to authorize a merger where he has reasonable cause to believe that, as the case may be,
(1) the party and the party authorities that would result from a merger would not be able to discharge their outstanding liabilities; or
(2) the book value of the assets of the party and party authorities that would result from a merger would be less than their liabilities.
The chief electoral officer may require the applying parties or their party authorities to remit to him any book, account or document relating to their financial affairs. He may also require that the balance sheets of the applying parties be audited by an auditor.