The vote came as fears arose that the changes to the way it does its accounts may threaten future tax breaks for Lloyds members.
Almost 80% of the market’s members voted in favour of the vote, held on a weighted basis. Against the proposals were 20.12% of voters. Of all those eligible to vote, 64% were corporate and 36% was ‘private third party capital,’ made up of individual investors or ‘names.’
The voted resolutions will modernise the 300 year-old market and enable it to face massive losses caused by large insurance claims including those filed follwoing September 11.
Last year, the market reported record losses of £3bn. And losses stemming from the terrorist attacks may increase the deficit, as American Airlines and United Airlines insurers pay out £3.8bn.
The resolutions were passed after a block vote which also includes several controversial changes to corporate governance opposed by members groups of individuals or ‘names’.
The ALM, a members group, urged names to vote against today’s resolutions that would take away the one-member one-vote system and create proportional representation where votes are given in relation to the amount invested.
Lloyd?s Chairman, Sax Riley, said: ‘With 80% backing for these reforms, we now have a decisive mandate to implement our proposals for modernisation. The first stage of our work has concluded; the second stage ? implementation ? is now underway.
‘Lloyd?s has set itself a clear goal – to become more transparent, more efficient, strongly regulated and ultimately, profitable. These reforms provide us with a path to follow.
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