1. In this paragraph ‘‘agency staff’’ means, in relation to a syndicate, the active underwriter and any partner in or director, employee or officer of the managing agent of the syndicate and ‘‘member of the agency staff’’ has a corresponding meaning.
2. Without prejudice to any other right of the managing agent to allocate syndicate allocated capacity a managing agent may allocate to a member or members of the agency staff, or to one or more corporate members for the benefit of the member or members of the agency staff, an amount of syndicate allocated capacity for the succeeding year of account not exceeding in aggregate 2 per cent of the syndicate allocated capacity of the relevant syndicate for the current year of account if the managing agent has given notice of its intention to make such an increase in accordance with [3. below] and obtains the requisite level of approval of the members of the syndicate for the current year of account within 14 days after the date on which the managing agent gives such notice.
3. Any notice given by the managing agent in accordance with [2. above] shall be given in writing:
(a) in the case of a member (other than a member who participates in the syndicate through a MAPA) 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 member who participates in the syndicate through a MAPA, to that MAPA operator; and
(c) in any other case, direct to the member.
4. For the purposes of this paragraph ‘‘requisite level of approval’’ has the meaning given in paragraph [3. in Consolidated Requirements Part 2 > General Operational Matters > Syndicate Pre-emption > Approval for proposed increases in syndicate allocated capacity].
5. A member’s agent which receives a notice under [3.(a) above] shall, forthwith after receipt of that notice, inform the member concerned of that notice and shall seek and give effect to the member’s instructions.
6. A member’s agent which receives a notice under [3.(b) above] may in its absolute discretion either approve or disapprove of the proposed increase without being obliged to consult or comply with the instructions of any member of the MAPA.
7. For the purposes of this paragraph an approval or disapproval may be given:
(a) in the case of a member who participates in the syndicate otherwise than under arrangements made by or through a members’ agent, by that member;
(b) in the case of any other member (other than a member who participates in the syndicate through a MAPA), by his members’ agent acting on his instructions on his behalf; or
(c) in the case of any member who participates in the syndicate through a MAPA, by the operator of the MAPA.
8. The managing agent shall keep copies of all replies received by it in response to a notice issued under this [‘Participation of agency staff’ section] and furnish them to the Council on request.