Over South’s 1♣ opening, West overcalls 1NT, North makes a normal penalty double and East rescues with 2♦.
I take it that a double by South is best reserved for penalties if you are playing 5533 or 5543 and strong no trump. (If you are playing Acol weak no trump presumably a double could include any balanced 15+.) So South above would pass round to North. My question now is what should a double by North mean?
My view is that this should not be a penalty double. True, if you were North with something like ♦ QJ109 and a balanced 11 you would want to penalise. Far more common North would have a hand similar to above. North could reason that South’s pass most likely shows a balanced 12-14 with fewer than 4 diamonds, less likely an unbalanced hand with 5 clubs, or a 4414 distribution. It is far better then, for North’s double in this sequence to be for take-out. So with the hand above South would take out into 2♥ and would play in this contract.
So what should be the general rules for penalty/take-out after an overcall of 1N is doubled? I can imagine North for his first double holds a token that says on it “Double is for penalties”. When East makes a rescue bid the token must be passed to South. So if South doubles it is for penalties and if West then rescues into a new suit the token is passed back to North who has permission to double again for penalties. OTOH if South passes, she keeps the token and so the token-less North can only double for take-out.
Is this the normal expert way or am I totally off beam?