Obligation to make a mandatory offer

2. Subject to the following [provisions], if any person together with any associates (together referred to in this byelaw as an ‘‘associated group’’) is or becomes entitled to participate in a syndicate for the next following year of account with member’s syndicate premium limits in aggregate not less than 75% of the syndicate allocated capacity of that syndicate for the next following year of account then:

(a) if the managing agent of that syndicate is itself a company connected with any member of that associated group, the managing agent; or

(b) if the managing agent of that syndicate is not so connected, that member of that associated group having the highest member’s syndicate premium limit in relation to that syndicate for the next following year of account; or

(c) whether or not the managing agent of that syndicate is so connected, such other member of that associated group as the Council may specify on written application by that person,

shall forthwith, or within such period as the Council may specify, make an invitation in accordance with Mandatory Offer: Terms of mandatory offers.

^{Mandatory Offer Byelaw, paragraph 2(2)}

3. For the purpose of [1. and 2. above], in calculating the member’s syndicate premium limit of any person for the next following year of account, where the managing agent of the syndicate is a connected company of that person, there shall be included any portion of the syndicate allocated capacity of that syndicate for the next following year of account which is allocable at the discretion of that managing agent provided that such portion shall not be included more than once when calculating the aggregate member’s syndicate premium limits of the members of an associated group.

^{Mandatory Offer Byelaw, paragraph 2(3)}

4. Where, under any approval granted under the [Membership & Underwriting Conditions and Requirements], the same individual is permitted to act as underwriter for two or more syndicates managed by the same managing agent, one of which consists only of a single corporate member and the other or others of which include individual members, this byelaw shall apply as if all the syndicates were the same syndicate.

^{Mandatory Offer Byelaw, paragraph 2(4)}

5. [1. and 2. above] shall apply subject to the transitional provisions set out in Mandatory Offer: Transitional Provisions.

^{Mandatory Offer Byelaw, paragraph 2(5)}