Behind the Lloyd’s Corporation and the Lloyd’s market is the Lloyd’s Council
The Lloyd’s Society was first incorporated by an Act of Parliament called the Lloyd’s Act in 1871. The current governance structure and rules are defined by the Lloyd’s Act 1982 under which the Lloyd’s Council was established to have control over the management and regulation of the affairs of the Lloyd’s Society, including the power to make by-laws for these purposes.
Lloyd’s current by-laws note that in accordance with Section 6(2), Lloyd’s Act 1982, the Council, “shall have the management and superintendence of the affairs of the Society and the power to regulate and direct the business of insurance at Lloyd’s; and may exercise all the powers of the Society. … The Council may at any time give such directions or impose such conditions or requirements on any member (or any class or group thereof) as it thinks reasonably necessary or appropriate. Without prejudice to the generality of the foregoing, a direction, condition or requirement given or imposed under this paragraph may include a direction, condition or requirement for the purposes of… 3c) directing that the member cease, or reduce the level of, his underwriting business at Lloyd’s, underwriting business of a specified class or underwriting business through a specified syndicate at Lloyd’s.”
In June 2020, Lloyd’s Council re-centred its authority and confirmed the members of a newly formed Council in order “to ensure efficient governance and management of the Lloyd’s market and Corporation and to combine robust governance with swift decision making”.
The Council has 15 members which include the three executive officers of Lloyd’s Corporation appointed by the Council. The other members are elected by Lloyd’s membership. The Chairman and Deputy Chairmen are elected annually by the Council members. The Council discharges some functions directly by making decisions and issuing resolutions, requirements, rules and by-laws. Other decisions are delegated to committees and the members of the Executive.