Following the Brexit vote, David Cameron resigned as Prime Minister, and therefore leader of the Conservative Party. A leadership contest has been underway, with the hope of a replacement being found by early September.
The way the Conservative Party runs leadership contests has three stages:
1. Nominations: Members of the Parliamentary Party put forward candidates. There must be at least 3 candidates for the contest to go ahead. In this case, there were 5: Teresa May, Michael Gove, Stephen Crabb, Andrea Leadsom and Liam Fox. To be eligible, a candidate must have at least 2 proposers from the MPs.
2. MPs vote: The MPs then vote for their preferred candidate. After each round of voting, the candidate with the fewest votes is eliminated. This is repeated until only two candidates remain.
3. Members vote: There is then a ballot of the entire Party. Each member selects their preferred candidate of the two that remain. The one with the most votes, becomes leader of the Party (and in this case, since the Conservatives are in power, the Prime Minister).
In this case, Liam Fox was eliminated after the first ballot, and Stephen Crabb also decided to withdraw from the contest. Today, the second round of voting took place. Michael Gove was eliminated, leaving Teresa May and Andrea Leadsom. These two will now face the ballot of the wider Conservative Party, and whatever happens, Britain will have its second female Prime Minister.
May and Leadsom will now campaign amongst the party ahead of the ballot, and the results are expected in early September.