Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Gooda Walker group backs rescue plan

Peter Rodgers Financial Editor
Tuesday 30 July 1996 23:02 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The pounds 3.2bn rescue plan for the Lloyd's of London insurance market received the backing of the biggest action group yesterday, when members of the loss making Gooda Walker syndicates voted overwhelmingly in favour of dropping their legal actions against the market.

Proxies lodged ahead of a meeting, attended by 500 of the 3,000 Gooda Walker Action Group members at the Grosvenor House Hotel in London, showed more than 90 per cent in favour.

The final count is expected this morning but is likely to show a similar out-turn. The tally of proxies and votes received early in the day was 1,100 in favour and 120 against.

A vocal group of several dozen members, led by Howard Johnson, an American member, warned the meeting that members were being conned into a disastrous settlement and complained about conflicts of interest on the action group committee.

They campaigned unsuccessfully to force the action group's chairman, Michael Deeny, to quit his membership of the Lloyd's ruling council and also attacked the success fees which are to be paid to action group committee members.

These payments will be based on the recommendations of an independent remuneration committee. Motions put forward by the rebel members to change the way the success fees are to be paid were heavily defeated.

Mr Deeny told members that lives had been blighted by what had happened to the Gooda Walker syndicates and some of the committee would have liked to see the perpetrators in jail.

But attempts to pursue them through the Serious Fraud Office had not worked. The action group committee strongly recommended acceptance of the Lloyd's proposals.

Action groups must formally agree to withdraw their legal actions against Lloyd's as a condition of the reconstruction and renewal programme. But their individual votes on whether to accept are due to be posted over the next four weeks, up to a deadline of 28 August.

Many members should today receive their detailed "finality" statements.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in