Powers of Charging

Requirement to pay charges

1. The Council may require the payment by a member of the Lloyd’s community of such charges (which in this [Powers of Charging section of the Consolidated Requirements] shall mean any charges, levies, fees or equivalent howsoever called) as the Council may prescribe in respect of: 

(a) the supply, provision, rental or installation of any goods, services, facilities or amenities of any kind whatsoever; or 

(b) the administration of the affairs at Lloyd’s of any member of the Lloyd’s community or the provision of services or information in connection therewith, including (without prejudice to the generality of the foregoing): 

(i) in relation to any member or any underwriting agent acting as such in relation to that member, for acting as trustee or holder of, or providing or reconciling information or performing any other function in relation to, all or any part of that member’s premiums trust funds, Lloyd’s deposits, special reserve funds or other trust funds at Lloyd’s or any cash or assets (including income) which are or were comprised in, or are or were connected with, any such fund or part; or 

(ii) the maintenance of membership, registration or other records in respect of any member of the Lloyd’s community or for the purposes of or in connection with his affairs at Lloyd’s, or in respect of any syndicate or its business, and the provision or reconciliation of any such information; or 

(iii) the maintenance of records to enable or assist any member of the Lloyd’s community to carry on any business or activity or perform any function at Lloyd’s or in connection with the carrying on of any such business or activity or the performance of any such function (whether the information relates to the relevant member of the Lloyd’s community or its affairs or to other persons or their affairs) and the provision or reconciliation of any such information; or 

(iv) the provision of services or information to underwriting agents in connection with any auction; 

(c) the consideration by the Society or the Council of any application by any member of the Lloyd’s community for any approval, consent, permission or exemption under or in connection with any requirements of the Council; or 

(d) the response by the Society to any enquiry or request for information; or 

(e) the exercise by the Society of any function or power pursuant to Lloyd’s Acts 1871 to 1982 and any byelaw or regulation made thereunder; or 

(f) the furtherance of the objects of the Society.

2. In [1. above] (except in sub-paragraph (f)), ‘‘the Society’’ means the Society itself and also any of its officers and employees and any person or persons in or to whom (whether individually or collectively) any functions or powers are vested or delegated by or pursuant to Lloyd’s Acts 1871 to 1982 and any byelaw or regulation made thereunder.

3. Where any charge falling within [1.(b)(i) above] is also recoverable by the Society, in its capacity as trustee, from any trust fund to which (or to any part of which) it relates, the Society may (at its sole discretion) instead of recovering that charge from the member recover it from the trust fund in question. 

4. Where any charge falling within [1.(b)(i) or (d) above] relates to any cash or assets (including income) which are or were comprised in, or are or were connected with, any trust fund or part thereof, those amounts shall, for the purposes of [3. above], be regarded as relating to the trust fund in question.

Requirement of members and underwriting agents to pay subscriptions and entrance fees
5. Every member and underwriting agent shall pay to the Society such entrance fees and annual subscriptions as the Council may from time to time prescribe in accordance with the provisions of this [Powers of Charging section of the Consolidated Requirements].

6. Entrance fees and annual subscriptions shall be levied on members by service on each member or his underwriting agent or agents of a notice specifying the amount due or the method of calculating the amount due, which shall be paid by such member not later than the date specified for that purpose in such notice. 

Calculations and payments

Amount and manner of calculation
1. The amounts of any charges pursuant to [paragraphs 1. to 4. in Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Requirements to pay] and the manner of calculating such amounts shall be such as the Council shall from time to time prescribe. 

The amounts of any entrance fees and annual subscriptions pursuant to [paragraphs 5. and 6. in Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Requirements to pay] and the manner of calculating such amounts shall be such as the Council shall from time to time by special resolution prescribe.

Date and manner of payment

Charges pursuant to [paragraphs 1. to 4. in Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Requirements to pay] shall be payable on such dates and in such manner as the Council shall from time to time prescribe.

Entrance fees and annual subscriptions pursuant to [paragraphs 5. and 6. in Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Requirements to pay] shall be payable on such dates and in such manner as the Council shall from time to time by special resolution prescribe. 

For the purposes of this [Powers of Charging section of the Consolidated Requirements], such date determined by the Council pursuant to [3. and 4. above] shall be the “due date”. 

Non-payment

1. Without prejudice to [2. below] where a member of the Lloyd’s community fails to make any payment required pursuant to this [Powers of Charging section of the Consolidated Requirements]by the due date (as defined in [paragraphs 3. and 4. in Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Calculations and payments]) the Council may charge interest on such amounts of the payments as are unpaid on the due date from the due date until the date of payment at a rate determined by the Council.

2. In relation to members, the making of payments prescribed pursuant to [Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Requirements to pay] and any interest thereon charged pursuant to [1. above] shall be a condition relating to permission to underwrite insurance business at Lloyd’s pursuant to paragraph 42 of the Membership Byelaw (No. 5 of 2005) and the provisions of the Membership Byelaw (No. 17 of 1993) shall apply accordingly where any member fails to comply with such condition. 

Powers to obtain information

1. Every member of [the Lloyd’s community] shall furnish to the Council such information as the Council may from time to time require by notice in writing to such member of the Lloyd’s community or, in the case of a member, his underwriting agent for the purposes of this [Miscellaneous Provisions part of the Consolidated Requirement]. 

2. Any information required pursuant to [1. above] shall be furnished in such manner and at such time as the Council may specify in writing.

3. A member of the Lloyd’s community shall only be required under [this ‘Powers to obtain information’ section (paragraphs 1. to 3.)] to furnish such information as he or, in the case of a member, his underwriting agent possess or can reasonably be expected to obtain.

Miscellaneous powers of the Council

7. In relation to any charges, entrance fees or subscriptions required under [Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Requirements to pay], the Council may: 

(a) determine the amount in accordance with a specified scale or other specified factors; 

(b) provide for the return or abatement of any charge, entrance fee or subscription in specified circumstances; 

(c) make different provision for different cases and different circumstances; or 

(d) exempt wholly or in part any person or category of person from liability to pay any charge , entrance fee or subscription. 

Agreements to limit

8. Agreements to limit Central Fund and New Central Fund contributions, annual subscriptions and related requirements 

1. The requirements set out in [2. to 5. below] and [Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Meetings of members] apply to contributions to the Central Fund, as prescribed under the Central Fund Byelaw (No. 4 of 1986), contributions to the New Central Fund, as prescribed under the New Central Fund and Property of the Society Byelaw (No. 23 of 1996) and to annual subscriptions and entrance fees prescribed pursuant to [paragraphs 5. and 6. in Consolidated Requirements Part 2 > General Operational Matters > Miscellaneous Provisions > Requirements to pay]. 

Agreements to limit contributions, annual subscriptions and/or entrance fees 
2. Subject to [4. and 5. below], the Council may upon admitting a person to membership of the Society, or at any time while a person remains a member, enter into an agreement with, or give an undertaking in favour of, that person (in this paragraph called ‘‘the relevant member’’) containing all or any of such provisions as are described in [3. below] together with any such other provisions as the Council and the relevant member may agree.

3. The provisions referred to in [2. above] are: 

(a) the grant by the Council to the relevant member, in such terms and to such an extent as may be specified in the agreement or undertaking, of any such exemption or exemptions as are referred to in paragraph 4 of the Central Fund Byelaw (No. 4 of 1986), paragraph 4 of the New Central Fund and Property of the Society Byelaw (No. 23 of 1996) and, insofar as it relates to annual subscriptions and entrance fees, [4. in Consolidated Requirements Part 2 > General Operational Matters > Powers of Charging > Miscellaneous powers of the Council]; 

(b) an undertaking by the Council that it will not exercise the powers conferred by the Central Fund Byelaw (No. 4 of 1986), the New Central Fund and Property of the Society Byelaw (No. 23 of 1996) and, insofar as it relates to annual subscriptons and entrance fees, this [Powers of Charging section of the Consolidated Requirements], or such of those powers as may be specified in the agreement or undertaking, unless some specified event has first happened or some specified condition has first been satisfied (and such specified event or condition may include the prior approval of the proposed exercise of the power by members, or any class, category or description of members, by such majority and in such manner (whether at a meeting (including a meeting held under [Consolidated Requirements Part 2 > General Operational Matters > Powers of Charging > Meetings of members]) or otherwise) as may be so specified); 

(c) an undertaking by the Council that it will give to the relevant member prior notice, of such a period as may be specified in the agreement or undertaking, of the proposed level of any contribution to the Central Fund or the New Central Fund or of the annual subscription for any year and that, save in such circumstances and to such an extent (if any) as may be so specified, such contribution or annual subscription will not exceed the level referred to in the notice; 

(d) an undertaking by the Council that for such period as may be specified any Central Fund contributions, New Central Fund contributions or annual subscriptions will be determined or calculated on such basis as may be specified; 

(e) an undertaking by the Council that it will, in such circumstances as may be specified in the agreement or undertaking, exercise its powers under the Membership Byelaw (No. 17 of 1993) and its powers under the Agency Agreements Byelaw (No. 8 of 1988), or under any agreement in a form prescribed under those byelaws, so as to enable the relevant member to terminate his participation in any syndicate by shorter notice than that which would otherwise be required; 

(f) an undertaking by the relevant member that he will make, or will if so required by the Council make, contributions to the Central Fund or the New Central Fund in such circumstances and in such amounts as may be specified in the agreement.

4. An agreement which includes a provision such as is described in sub-paragraph [(a) or (b) in 3. above] shall not be entered into except with the prior sanction of a special resolution of the Council.

5. A special resolution passed for the purposes of [4. above] may relate to a proposed agreement with or undertaking in favour of a particular member or may relate generally to such proposed agreements with or undertakings in favour of members, or members of such classes or description, as may be specified; and any exemption granted under [2. to 4. in this Agreements to Limit section] with the sanction of such a special resolution shall for the purposes of paragraph 4 of the Central Fund Byelaw (No. 4 of 1986), paragraph 4 of the New Central Fund and Property of the Society Byelaw (No. 23 of 1996) or, as the case may be, [Consolidated Requirements Part 2 > General Operational Matters > Powers of Charging > Miscellaneous powers of the Council] be treated as granted by special resolution.

Meetings of members

1. Without limiting the generality of [3.(b) in Consolidated Requirements Part 2 > General Operational Matters > Powers of Charging in Agreements to limit], approval of a proposed exercise by the Council of its powers to levy contributions to the Central Fund or the New Central Fund or to prescribe the level of annual subscriptions (each a ‘‘relevant power’’) may, if an undertaking given by the Council under that paragraph so provides, be given at a meeting of members held in accordance with the provisions of the Constitutional Arrangements Byelaw (No.2 of 2010) that are applicable to general meetings convened pursuant to paragraphs 6.3 or 6.4 of that byelaw, subject to the modifications set out under [2. to 5.] below.

2. A member shall be entitled to attend and vote at the meeting if, but only if, he satisfies the following conditions - 

(a) He will, if the Council exercises the relevant power in the manner proposed, be liable to pay the Central Fund contribution, New Central Fund contribution or annual subscription to which the proposed exercise relates; and 

(b) He is a person to whom the Council has undertaken under [3.(b) in Consolidated Requirements Part 2 > General Operational Matters > Powers of Charging in Agreements to limit] that it will not exercise the relevant power in the manner and in the circumstances proposed without the prior approval of a resolution passed at a meeting held under this [Meetings of members section]. 

3. The quorum of members necessary for the holding of a meeting under this [Meetings of members section] shall be a member or members present in person or by proxy who satisfy the conditions specified in [2. above] and who when taken together will be liable to pay not less than one-tenth of the aggregate Central Fund contribution, New Central Fund contribution or annual subscription to which the proposed exercise of the powers of the Council relates. 

4. Each member who is qualified to attend and vote at a meeting held under this [Meetings of members section] shall have one vote for each whole £100 of Central Fund contribution, New Central Fund contribution or (as the case may be) annual subscription which he will be liable to pay if the Council exercises its powers in the manner proposed.

5. A resolution proposed at a meeting held under this [Meetings of members section] shall be passed if a simple majority of the votes cast are cast in favour of it.