There are a number of reasons for teams being withdrawn for eg.. A club has 40 girls show up for one grade trials. With the knowledge that many of them are settled in teams and would be happy to play, it would be reasonable to nominate four teams 1 Div 1, 2 Div 2 and perhaps 1 Div 3.
The nominations are put up, but this club may be knocked back on its 2nd Div 2 nominations and a number of girls who feel they are better than Div 3, pull the pin and don't play, or look elsewhere for a better opportunity.
Or, a player expected to get a spot in Div 1&&.or she expected a new coach&....etc, etc.
The biggest problem is that the selection process is flawed although there is some minimal input from lower division coaches, the Div 1 coach in the end, will make all the decisions and has probably never seen half the girls play. The decisions aren't announced until it is too late to alter the team nominations made by the club.
I don't see how this by-law is going to help!