Minutes of EMAG committee meeting, 29th January 2001

Present: Vincent Nolan, Tom Lake, Michael Lister, John Gardner, Paul Braithwaite, Adrian Howard-Jones, David Browning (EMAG committee members) Jeremy Lever QC (initial items) Colin Slater (EMAG members)

Apologies: Alex Henney,Richard Nolan, Edgar Samuel

1. Minutes of Previous Meeting
   
   The Minutes of the meeting held on Jan 8th. were approved. It was agreed that this record of decisions and action commitments would be supplementd by fuller minutes (prepared by TL for this meeting), for the benefit of members not present and as a basis for the report on the website.
   
   
2. Counsel's Opinion
   
   JL and AH-J reported on progress in obtaining Counsel's Opinion. The counsel appointed is Nicholas Warren QC (who is well regarded by JL) and he will report in March. AH-J will prepare and circulate a more detailed note on the situation.
   
   JL was concerned that a wave of litigation might engulf the Society. It was not at all clear how decisions by 75% of the members (as apparently proposed by Chris Headdon) could have any force in withholding contractual rights from policyholders. With falling interest rates many GAR policyholders might not think the offer sufficient, while non-GAR policyholders would wonder why they should be disadvantaged.
   
   
3. Selection of New Chairman
   
   VN reported on a phone conversation with Jonathan Dawson (Chairman of ELAS Nominations Committee). The Committee would complete the interviewing of shortlisted candidates this week. Member representatives would be invited to a 'courtesy meeting' with the preferred candidate, if the candidate agreed, before the choice was announced publicly. The Chairman would then appoint non-executive Directors.
   
   The committee observed that members had been allowed no influence on the selection of the Chairman so far although they were the owners of the with-profits fund and business. Jonathan Dawson had confirmed that the role of the new chairman had not been defined for the head-hunters. What sort of candidate would apply while the business was being hawked around? It appeared that Jonathan Dawson was satisfied with the selection of candidates none of whom to date were actuaries, nor currently with insurance companies.
   
   VN was instructed to draft a letter to Dawson (to be circulated for a response within 3 days) accepting any invitation to a 'courtesy meeting', but also expressing EMAG's dissatisfaction with the process of selection and also the new Chairman's sole responsibility for the apointment of non-executive Directors. PB will draft a Press Release on the subject. A copy of VN's letter and the Press Release to be sent to the FSA and relevant politicians. (VN's draft has been circulated to Committee members)
   
   
4. Finance
   
   ML reported that the current bank balance after payment of all known expenses was £9,142
   
   
5. Membership Recruitment
   
   A quote for mailing of 35p per letter had been obtained. ML will report by the end of the week on the rate of return from the current mailing. TL will then circulate a proposal for next steps (for quick response from the Committee). PB will look into the costs of advertising for members. A CD Rom of the complete ELAS membership list has been purchased for £1,000
   
   There was some discussion as to whether proxies for the AGM should be sought along with the mailing. The majority thought that members would not return proxies without a definite programme and motions for the AGM while others thought that the gathering of proxies was so important that it should be started immediately.
   
   Cold call recruitment was also discussed - but the committee thought it would be disturbing to members and poorly received.
   
   There was some discussion of the relative merits of mailing campaigns versus advertising in the press.
   
   
6. Treasury Select Committee
   
   The Treasury Select Committee is to investigate risk in the life insurance business `after the Equitable Life affair' under broad terms of reference. First evidence is due on 5th February and first evidence will be heard on 15th February.The full hearings may well carry on into the next Parliament.
   
   It was agreed that EMAG should submit a short, simple, non-emotive draft, drawing on material from AH draft as appropriate. DB will produce a draft, with assistance from JG. There is no objection to AH making a personal submission as well.
   
   
7. GAR Liability Capping Negotiations
   
   EMAG are prepared to participate in capping discussions if invited. This was discussed with the Board on 19th January but had not progressed since.
   
   
8. Composition of Committee
   
   It was agreed to invite Alex Henney to be a member of the Committee (PB will pass on the invitation). Brian Gott has given 4 weeks notice of his resignation from the Committee. JL conformed he did not wish to be member of the Committee, but wishes to be kept informed and is available for consultation as appropriate. The Committee will now consist of:
   
        Vincent Nolan (Chairman)
        Adrian Howard-Jones (Secretary)
        Michael Lister (Treasurer)
        Tom Lake (Membership)
        Paul Braithwaite
        David Browning
        John Gardner
        Alex Henney (if he accepts the invitation)
   
   
9. Volunteer Sub-Groups of EMAG Members
   
   TL will seek to set up active 'corresponding groups' of EMAG members on particular topics, as follows:
        Legal (including misselling) (AH-J to chair)
        Media (PB)
        ELAS Rules and AGM/EGM procedures (CS)
        Web Presence (TL)
        Treasury Submission, etc. (DB and JG)
        Settlement Studies (CS)
        Interface with other ELAS Member Groups (PB)
   
   
10. Next Meeting
    
    Provisionally Monday 26th Feb. at 6.30 for 7.00 p.m. at 14 Garrick St. WC2
    There might also be a need for a meeting in the interim at which policy discussion took priority over mechanics and reporting.
    Vincent Nolan