3. Making and acceptance of pre-emption offers
1.The following provisions of this [‘Making and acceptance of pre-emption offers’ section] shall apply to any offer made under [Consolidated Requirements Part 2 > General Operational Matters > Syndicate Pre-emption > Obligation to make pre-emption offer].
2. The offer shall be made in writing:
(a) in the case of a member who participates in the syndicate under arrangements made by or through a members’ agent, to that members’ agent on his behalf;
(b) in the case of a person in whose favour a nomination has been made who acts by a members’ agent, to that members’ agent on his behalf;
(c) in the case of a person who by auction has become entitled to participate in the syndicate for the succeeding year of account and who acts by a member’s agent to that member’s agent on his behalf;
(d) in any other case, direct to the member or person concerned.
3. Where two or more members participate in the syndicate under arrangements made by or through the same members’ agent, the offers to all of them may be made by a single communication to the members’ agent provided that sufficient information is given to enable the members’ agent to identify the pre-emptive entitlement of each of the members concerned.
4. The offer shall be made and despatched not later than the prescribed date.
5. Any acceptance of the offer:
(a) shall be in writing;
(b) may be in respect of the whole of the pre-emptive entitlement or such part of it as may be specified in the acceptance; and
(c) shall be sent so as to be received by the managing agent or such other person as may be duly authorised by the managing agent for the purpose of receiving any such acceptance not later than the prescribed date.
6. A members’ agent which receives a pre-emption offer in its capacity as a members’ agent of a qualifying member shall not later than the prescribed date inform the member concerned of its terms and shall seek and give effect to the member’s instructions.
7. Subject to [10. below], an offer which is not accepted in accordance with its terms and in accordance with the preceding provisions of this paragraph shall lapse.
8. An offer shall not lapse to the extent that a person to whom the offer is made surrenders his right in respect of the pre-emptive entitlement in an auction held under a capacity allocation scheme established by the Council pursuant to the Auction Byelaw (No. 14 of 1997) or pursuant to any conditions and requirements prescribed from time to time pursuant to the Conversion and Related Arrangements Byelaw (No. 22 of 1996).
9. Subject to:
(a) the provisions of this byelaw;
(b) any other applicable requirements of the Council;
(c) any pre-emption offer made under this byelaw and any agreement arising on the acceptance of any such offer;
(d) any subsisting agreement in the form of the standard managing agent’s agreement (general) or the standard managing agent’s agreement (corporate member) to which the managing agent is a party;
(e) any other agreement permitted by the Agency Agreements Byelaw (No. 8 of 1988) by which the managing agent is bound;
the managing agent shall be entitled to admit such underwriting members (whether or not members of the syndicate for the current year of account) to membership of the syndicate for the succeeding year of account with such member’s syndicate premium limits as it sees fit.