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Lloyd's names support plan

Tuesday 10 August 1993 18:02 EDT
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MEMBERS of the Lloyd's insurance market yesterday came down heavily against resolutions put forward at an extraordinary meeting last month that would have blocked the management's new business plan.

A call for Lloyd's to accept that it may have to pay damages to aggrieved members was defeated at the meeting by 12,104 votes to 5,673.

There was a similar majority against a proposal that Lloyd's names should be given a bigger say in the introduction of corporate capital to the market. This proposal also urged that members should be compensated for giving up a slice of their ownership of the goodwill and assets of the market.

But a resolution from the Association of Members supporting the management plans was carried by 13,623 against 4,179.

Neil Shaw, chairman of the association, said: 'The majority support the principle of returning Lloyd's to profit as a first priority. That is a vital pre-requisite for a satisfactory settlement of current disputes.

'We hope this marks an end to trial by EGM and an honest commitment to support a realistic business plan,' Mr Shaw said.

David Rowland, chairman of Lloyd's, said that the vote to support the plan gave the management a clear mandate to implement it.

A Lloyd's underwriting member, Daniel Salbstein, who suggested at the annual meeting in June that top professionals may have received backhanders, yesterday 'unreservedly withdrew' and apologised.

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