SCHEDULE 3PROVISIONS APPLYING TO AGGREGATE ACCOUNTS

PART 2AUDITORS

Prevention by members of deemed re-appointment of auditor7

1

An auditor of the aggregate accounts is not deemed to be re-appointed under paragraph 6(2) if the Council of Lloyd's has received notices under this paragraph from members of the Society of Lloyd's representing at least the requisite percentage of the total voting rights of all members of the Society who would be entitled to vote on a resolution that the auditor should not be re-appointed.

2

The “requisite percentage” is 5%, or such lower percentage as is specified for this purpose in Lloyd's byelaws.

3

A notice under this paragraph—

a

may be in hard copy or electronic form;

b

must be authenticated by the person or persons giving it; and

c

must be received by the managing agent before the end of the financial year immediately preceding the time when the deemed re-appointment would have effect.