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In theory there is nothing to prevent Cameron from being PM wihout a seat in parliament. It is merely custom whereby members of the Executive are drawn from the legislature. Patrick Gordon-Walker was Labour Foreign Secretary for 5 months from October 1964 after losing his seat in the general election, resigning only when he failed to win a by-election. In practice a member for a very safe conservative seat would be promoted to the Lords and Cameron stand in the resultant by-election.
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