1. Subject to [7. below], no managing agent shall reduce the syndicate allocated capacity of a syndicate managed by it for the succeeding year of account without complying with the requirements of this byelaw.
2. Where a managing agent proposes to reduce the syndicate allocated capacity of a syndicate for the succeeding year of account it shall ensure that the member’s syndicate premium limits of all the members of the syndicate for the current year of account (other than any who cease to be members of the syndicate for the succeeding year of account or request a greater reduction) are reduced by the same proportion, except to the extent of any rounding required to ensure that each member’s syndicate premium limit is an integral multiple of £1.
3. For the purposes of this [‘Reductions in syndicate capacity made by the managing agent’ section] a MAPA shall be treated as if it were a single member and a different person from any individual who is a member of the MAPA and is also a member of the syndicate otherwise than through the MAPA.
4. Any proposed reduction in the syndicate allocated capacity of a syndicate for the succeeding year of account shall be notified in writing no later than the prescribed date:
(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 any other case, direct to the member.
5. Any proposed reduction in the syndicate allocated capacity of a syndicate for the succeeding year of account shall be notified to the Society in such form and in such manner as the Council may from time to time prescribe no later than the prescribed date.
6. In the case of any proposed reduction in the syndicate allocated capacity of an ongoing natural syndicate for the succeeding year of account, the amount by which each member’s member’s syndicate premium limit shall be reduced shall be an amount equal to:
A x X , where:
Y
A = the amount by which item Y exceeds the aggregate of the proposed syndicate allocated capacity of the ongoing natural syndicate and the parallel syndicate for the succeeding year of account;
X = the member’s syndicate premium limit for the current year of account;
Y = the aggregate of the syndicate allocated capacity of the ongoing natural syndicate and the parallel syndicate for the current year of account.
7. The Council may permit a managing agent to reduce the syndicate allocated capacity of a syndicate without complying with any or all of the requirements of this [Syndicate Pre-Emption part of the Consolidated Requirements], subject to such conditions as the Council may impose.