ELECTING THE COUNCIL, THE CHAIRMAN
AND THE DEPUTY CHAIRMEN; CORPORATE MEMBERS
5. The working members on the Council are elected
from among all the working members by vote of those members, and
the same principle applies to election of the external members.
Working members are elected on a one member, one vote basis.[6]
Voting rights in elections for external members are based on the
amount of underwriting capacity attributable to the voting member.[7]
Nominated members are appointed by the Council by special resolution.[8]
At present, their appointment is subject to confirmation by the
Governor of the Bank of England.[9]
6. Under section 4 of the 1982 Act, the Council
must currently conduct an annual election for a Chairman, together
with two or more Deputy Chairmen. The same section provides that
the Chairmen and Deputy Chairmen must be chosen from among the
working members of the Council.
7. Corporate members were admitted to Lloyd's
for the first time in the mid-1990s, and individual membership
has been in the process of being phased out since 2003. The byelaws
provide that, because the amount of external underwriting capacity
attributable to corporate external members now stands at between
64 and 90 per cent, four of the six external members on the Council
must be corporate external members.[10]
TERMS OF OFFICE
8. The current normal term of office of all three
categories of Council member is three years;[11]
the terms of office of Council members cannot be extended during
their term of office,[12]
and working members of the Council are not eligible for re-election
sooner than one year after the expiry of their previous term.[13]
There is an exception: if the Council so decides, the Chairman
and Deputy Chairmen can be re-elected immediately after the expiry
of the term of office, but only once.[14]
The current maximum term of office of the Chairman is therefore
six years.
1 The 1982 Act did not abolish the Committee, however,
and the Committee's existence and membership were restated by
section 5 of that Act. Section 5 provides that the Committee is
made up of the working members on the Council. Back
2
See 1982 Act, section 3(2) Back
3
See 1982 Act, section 2(1) Back
4
See 1982 Act, section 3(3) Back
5
See Council and Committee byelaw 1(1) Back
6
See Council and Committee byelaw 13(3). The byelaws are found
at: http://www.lloyds.com/Lloyds_Market/Tools_and_reference/Lloyds_Acts_and_Byelaws/Lloyds_Byelaws/ Back
7
See Council and Committee byelaw 13(4) and (5) Back
8
The definitions section of the 1982 Act defines a special resolution
as a resolution passed by separate majorities of: (a) all the
working members of the Council; and (b) all the other members
of the Council, including the existing nominated members. Back
9
See 1982 Act, section 3(2) Back
10
See Council and Committee byelaw 1(4) Back
11
See Council and Committee byelaw 17 Back
12
See section 3(5)(i) of the 1982 Act and Council and Committee
byelaw 17(3) Back
13
See section 3(5)(ii) Back
14
See section 3(5)(iii), although the subsection further stipulates
that this applies only in respect of one of their number at a
time Back
