1.    As used in this section, “most populous district” means the public school district involved in annexation or reorganization of school districts:

a.    Which maintained an elementary school; b.    More than one-half of which is included in the enlarged or reorganized public school district; and

c.    Which had a larger number of children of school age at the school census next preceding the inclusion of such district in the enlarged or reorganized public school district than any other public school district of the type described in     subdivisions a and b which is included in the enlarged or reorganized public school district.

2.    For the purposes of this chapter when an enlarged or reorganized school district is formed:

a.    The most populous district must be deemed to be the surviving district for social security purposes.

b.    The enlarged or reorganized public school district shall retain the same identification number which was previously assigned to the most populous district, as defined in subsection 1.

c.    The school districts, or parts thereof, included in the enlarged or reorganized district must be deemed to be annexed to the most populous district, or the part of the most populous district included in the enlarged or reorganized district, and to become identified with it, and the employees of the public school districts included in the enlarged or reorganized district, or if only part of a district is included in the enlarged or reorganized district, the employees who were employed in schools included within the enlarged or reorganized district must be deemed to be employees of the most populous district, which shall succeed the other districts in such enlarged district as a party to their respective contracts of employment.