Committee: Vincent Nolan - retiring chairman - (VN), Michael Lister - retiring Treasurer - (ML), David Browning (retiring), Paul Braithwaite (PB), Tom Lake (TL) and Alex Henney (AH).
In attendance: about 40 members.

Apologies: John Gardner, Adrian Howard-Jones, plus about 30 from members.

1. Current situation and discussion: Vincent Nolan introduced the committee. He gave a brief history of achievements under his stewardship and an update on Warren Report, with particular regard to ramifications of possible misselling on prospective compromise.

PB reported that Warren has been asked verbally by the Society to investigate the four areas he identified for further evaluation and that this has great relevance to nonGARs with regard to unfairness and misselling in the context of the compromise, but time is short.

Compromise talks: VN pointed out that, at ELAS's request, the talks are confidential under "Chatham House Rules". Discussions are ongoing, with EMAG members participating as individuals (VN, PB and Colin Slater).

Colin Slater's compromise proposal was briefly explained but it was made clear that it has not been adopted as EMAG policy. It was described as one example of a creative alternative solution worthy of evaluation.

The draft compromise: This is expected to be published in August, prior to consultative roadshows. To succeed, 50% of members voting must vote to approve and 75% by value (of those voting) in all defined classes and then it must be ratified by the Court. ELAS's solicitors Lovells are trying to rationalise down to two classes, GAR and nonGAR. All this must be achieved by the end of Feb 2002 to trigger further payment/s by Halifax of £250m (and potentially a further £250m if the old ELAS sales force achieve sales targets for years 2002 and 2003). Charles Thomson has pointed out that ELAS is "breaking new ground" here, with the unprecedented application of a Section 425.

Role of the FSA: VN reported that EMAG's meeting with the FSA in February had not been fruitful. EPHAG will meet the FSA for the third time on June 28^th.

Lay-member directors: AH reported ELAS still proposes to arrange interviews on the four action group (PB, AH, Ron Bullen and Jack Denbin) nominees with the new Board (subsequently confirmed as Aug 21^st).

What if compromise fails? VN reported that he has formally asked for a written response, thus far without response from Alistair Dunbar. He expressed the personal opinion that this has, thus far, probably simply not been considered. It is in members interest to accept to restore investment flexibility and thus bonuses would benefit, which Charles Thomson has estimated would be impaired in the long term by between half and one percent without a successful "cap" on GARs..

AH reported no response thus far from Vanni Treves to his suggestion of a "White Paper", detailing fully the precise financial situation of the with-profits fund.

Website: TL asked for volunteer/s to take over EMAG website. No takers.

2. Treasurer's report. Michael Lister presented. The accounts had been distributed to members with the notification of the AGM. Circa £8,000 in the bank. About 1,700 members. ML described that £1,300 had been expended on buying ELAS members' addresses and that mailings had generated a 5% response, which would probably not be equalled post Halifax. A discussion on future funding ensued with the conclusion that, to maintain independence, EMAG must continue to seek membership joining fees (£20) and to ask members for renewal annually.

A motion to adopt the accounts was proposed and seconded, put to the meeting, and approved.

VN thanked ML for his hard work as treasurer.

3. Adoption of EMAG's constitution: Andrew Pike, a solicitor and EMAG member, had prepared the proposed constitution. It was made available prior to the meeting and Andrew read it out, with explanations.

Key attributes: Committee to comprise between 5 and 15 members to be elected at AGM, with committee empowered to co-opt. Quorum 4. Joining subscription £20, but committee can vary. General Meeting to be held annually - with next to be by 1.11.2002. Minimum notice 21 days. Quorum for general meeting 15. EGM to be supported by at least 12 members.

After a discussion, a motion to adopt was formally proposed and seconded, put to the meeting, and approved.

4. Election of new committee. In addition to VN, ML and David Browning, John Gardner had indicated his intention to stand down, due to ill health.

The following existing committee members offered themselves for re-election: Paul Braithwaite, Tom Lake, Adrian Howard-Jones, Alex Henney. All were elected nem. com.

EMAG members Betty McCann, Colin Slater, Margaret Felgate and Rodney Allen also offered themselves for election to the committee and were formally approved by the meeting. (Rodney Allen, along with Paul Braithwaite and Alex Henney, was an unsuccessful independent candidate at the ELAS AGM.)

At this point Vincent Nolan handed over chair of the meeting to Paul Braithwaite.

Betty McCann assumed the role of treasurer. Paul Braithwaite was subsequently elected chairman by the committee. Margaret Felgate, who lives in Spain, will represent international policyholders on EMAG.

A unanimous vote of thanks was made to VN, in particular, and ML and all retiring members of the committee for their hard work.

5. AOB: The suggestion was made to call on ELAS to press government to abolish requirement to take annuity at 75. The meeting was against.

Legal audit: Herbert Smith will report to ELAS Board. Vanni Treves has promised to publish findings. PB pointed out that damages for culpability, which the Treasury Select Committee had indicated prima facie evidence against several possible candidates to pursue, was the only way to increase the size of "cake" available to the with-profits fund.

Annuitants: Rodney Allen, who is one, expressed the view that annuitants "have been clobbered" and are locked in.

A future for EMAG? The consensus was that there is an ongoing need for EMAG as a "ginger group". In particular to increase information flow to policyholders, to explore revision of ELAS constitution and modus operandi as a closed-fund, "virtual society". To co-operate with the other action groups, with particular regard to the compromise. To lobby ELAS, but also MPs, Treasury Select Committee, FSA, Consumers Association etc.

Member Edgar Samuels was thanked for arranging the venue.

Three EMAG members offered to help (Susan Greenberg, Jeremy Lane and John Gamlin).

The meeting closed at 8.30pm

Minutes prepared by David Browning and Paul Braithwaite

27^th June 2,001