1. This [‘MAPAs: syndicate pre-emption offers’ section] applies in respect of members who participate in a syndicate for the current year of account through a MAPA, where the managing agent of the syndicate proposes to increase the syndicate allocated capacity for the succeeding year of account.
2. Instead of making individual pre-emption offers to such members, the managing agent of the syndicate shall make to the operator of the MAPA an offer to allocate to such members of the MAPA as intend to participate in the syndicate through the MAPA for the succeeding year of account, taken together, an amount of capacity (‘‘the MAPA pre-emptive entitlement’’) equal to A x X , where:
Y
A = the amount of the proposed increase in the syndicate allocated capacity
X = the syndicate allocated capacity for the current year of account
Y = the aggregate of the member’s syndicate premium limits of the members who participate through the MAPA for the current year of account (disregarding any part of such limits allocated otherwise than through the MAPA)
3. The operator of the MAPA may accept the offer made under [2. above] (or may accept it in respect of such part of the MAPA pre-emptive entitlement as the operator may determine) without being obliged to consult or comply with the instructions of any member of the MAPA.
4. Any acceptance of an offer made under [2. above]:
(a) shall be in writing; and
(b) 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.
5. Every members’ agent which is also the operator of a MAPA shall provide to the Society in such form and in such manner and at such intervals or on such dates as the Council may from time to time prescribe, information in respect of each MAPA operated by any such members’ agent relating to:
(a) the extent to which the MAPA pre-emptive entitlement offered pursuant to [2. above] has been accepted; and
(b) the offers made pursuant to sub-paragraph (2) that have been declined.
6. Subject to [7. below], an offer which is not accepted in accordance with its terms and in accordance with [4. above] shall lapse.
7. An offer shall not lapse to the extent that the operator of a MAPA 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).
8. Subject to [9. below], where the operator of a MAPA accepts an offer made under [2. above], the relevant capacity shall be allocated among the members of the MAPA for the succeeding year of account in proportion to their respective participations in the MAPA for the current year of account.
9. Where, subsequent to the date on which an offer is made under [2. above], a member of the MAPA for the current year of account gives notice under clause 3.6 of the agreement between him and the operator of the MAPA in the terms of the standard members’ agent’s agreement (referred to for the purposes of this paragraph as ‘‘the agreement’’) electing to terminate his participation in the MAPA with effect from the end of the current year of account and to continue to participate in the relevant syndicate for the succeeding year of account otherwise than through the MAPA, the operator of the MAPA may allocate to that member such share of the relevant capacity as that member would have been entitled to under sub-paragraph (8) had that member not given such notice under clause 3.6 of the agreement.