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<div>In response to Akinbo's question below, I would like to ask the Co-Chairs to add a discussion of expert legal advice to Tuesday's agenda. </div>
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<div>I believe the CCWG will likely need our own subject matter expert in California not-for-profit corporate law. </div>
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<div>It's probably time we discuss how best to secure these services and to ensure that individual is in the service of the CCWG and the community, so we are not relying only on ICANN's interpretations. </div>
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Thanks,</div>
<div>Keith</div>
<div><br>
On Jan 11, 2015, at 3:32 AM, "Adebunmi AKINBO" <<a href="mailto:akinbo.adebunmi@gmail.com">akinbo.adebunmi@gmail.com</a>> wrote:<br>
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<div dir="ltr">+1 DelBianco = So, when the Board is confronting a community consensus to take an action that could put the corporation at risk of a lawsuit … how do you believe a board member is obliged to react?
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<div>On the above, can we seek a legal opinion?</div>
<div>Its important to address this scenario.</div>
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<div>This can happen at anytime in the lifetime of ICANN.</div>
<div>-Akinbo.</div>
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<div class="gmail_quote">On Sun, Jan 11, 2015 at 4:33 AM, Alan Greenberg <span dir="ltr">
<<a href="mailto:alan.greenberg@mcgill.ca" target="_blank">alan.greenberg@mcgill.ca</a>></span> wrote:<br>
<blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div>I am not an ICANN Board Member. I am not a lawyer. I am not a California law expert.<br>
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But I "hope" that the answer is "it depends". I would like to think that the risk of being sued and the potential liabilities (and the chances of losing!) would be weighed against the ICANN Mission, Core Values and its Articles of Incorporation which includes
the phrase "The Corporation shall operate for the benefit of the Internet community as a whole".<br>
<br>
Alan<br>
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At 10/01/2015 08:40 PM, Steve DelBianco wrote:<br>
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<blockquote type="cite">Thanks for the larger context around that bylaws provision, Bruce. But if we are considering whether the bylaws refer to ‘ICANN’ as the corporation or the
<u>community</u>, see ICANN’s own Management Operating Principles (2008 <a href="https://www.icann.org/en/system/files/files/acct-trans-frameworks-principles-10jan08-en.pdf" target="_blank">
link</a>, p. 5):<br>
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<dl><dd>"The third and perhaps most critical point of tension is between the accountability to the participating community to perform functions in keeping with the expectations of the community and the corporate and legal responsibilities of the Board to meet
its fiduciary obligations. The ultimate legal accountability of the organization lies with the Board, not with the individuals and entities that make up the ICANN community.â€
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</dd></dl>
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So, when the Board is confronting a community consensus to take an action that could put the corporation at risk of a lawsuit … how do you bellieve a board member is obliged to react?
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From: Robin Gross <<a href="mailto:robin@ipjustice.org" target="_blank">robin@ipjustice.org</a>><br>
Date: Saturday, January 10, 2015 at 8:10 PM<br>
To: Bruce Tonkin <<a href="mailto:Bruce.Tonkin@melbourneit.com.au" target="_blank"> Bruce.Tonkin@melbourneit.com.au</a>><br>
Cc: "<a href="mailto:accountability-cross-community@icann.org" target="_blank"> accountability-cross-community@icann.org</a>" <<a href="mailto:accountability-cross-community@icann.org" target="_blank"> accountability-cross-community@icann.org</a>><br>
Subject: Re: [CCWG-Accountability] Regarding role of Board directors<br>
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Thanks for the info, Bruce. It is worth pointing out that regardless of how those bylaws are interpreted, under California law, nonprofit board members owe a legal duty of loyalty to the corporation and there isn't anything that this working group can do change
California corporations law and the legal duty of loyalty each board member owes to the corporation (as a corporation, yes, not staff). This is where a tension comes in for trying to do public governance via a private corporation - the two concepts weren't
"built" for the other, so there are gaps and some issues as a result. I think this is an issue our group should explore.<br>
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Best,<br>
Robin<br>
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On Jan 10, 2015, at 4:43 PM, Bruce Tonkin wrote:<br>
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<dl><dd>Hello Steve,<br>
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<dl><dd>ICANN Bylaws Article 6 Section 7 defines the duty of directors to ICANN the Corporation:
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</dd><dd>Directors shall serve as individuals who have the duty to act in what they reasonably believe are the best interests of ICANN and not as representatives of the entity that selected them, their employers, or any other organizations or constituencies.<br>
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<dd>I have often heard you refer to that specific clause in the bylaws over the past year.<br>
</dd><dd>I think it is worth understanding it a little more. I personally believe that the intent of putting this clause in the bylaws is that several Board members are appointed to the Board from a specific stakeholder group, and this makes it clear that Board
members need to act on behalf of all stakeholders not just the stakeholder group that appointed them. So from my perspective it is a higher level of accountability than simply being accountable to the group that appointed them. We certainly make that clear
as new directors join the Board.<br>
</dd><dd>The clause does not mean that somehow a Board director is now accountable to the staff in the organization rather than the "ICANN community".<br>
</dd><dd>For those appointed to the Board by the nominating committee - I think it is already clear to them that they represent stakeholders as a whole, as they go through a rigorous interview process in front of the whole nominating committee.<br>
</dd><dd>In my experience as Board director, Boards in general operate on behalf of their stakeholders - these stakeholders could be the general public, shareholders, or members. Under its articles of incorporation, ICANN is structured to act on behalf of the
global public interest - i.e. the general public. <br>
</dd><dd>In addition to acting on behalf of stakeholders, a board is also accountable to govern an organization in accordance with the law. This to me is the "corporate" obligation that you often refer. This includes ensuring that the organization can meet its
financial commitments, ensure the staff have a safe workplace, ensure there are financial controls to stop fraud, ensure the organization complies with any contracts it has entered into etc. Directors of ICANN can be held personally liable under law if they
are negligent.<br>
</dd><dd>After the ATRT1 review, a set of governance guidelines were established to make this clearer:<br>
</dd><dd><a href="https://www.icann.org/resources/pages/guidelines-2012-05-15-en" target="_blank">https://www.icann.org/resources/pages/guidelines-2012-05-15-en</a><br>
</dd><dd>From the section on the role of directors:<br>
</dd><dd>"The fundamental responsibility of Directors (as defined below) is to exercise their business judgment to act in what they reasonably believe to be the best interests of ICANN and in the global public interest, taking account of the interests of the Internet
community as a whole rather than any individual group or interest" <br>
</dd><dd>"It is the duty of the Board to oversee management's performance to ensure that ICANN operates in an effective, efficient and ethical manner. The Board will also be responsible for overseeing the development of ICANN's short, medium and long-term strategic
plans, ensuring that they will result in sustainable outcomes, and taking account of the critical interdependencies of financial, human, natural, manufactured, social and intellectual capitals."<br>
</dd><dd>"Some of the Board's key responsibilities are to ensure that ICANN's ethics are managed effectively, that ICANN as a whole (as well as individual Board and staff members) operates pursuant to the highest ethical standards, that ICANN complies with applicable
laws, and that ICANN considers adherence to best practices in all areas of operation."<br>
</dd><dd>The bylaws could certainly be enhanced to incorporate the notion in the Governance Guidelines that Board directors are accountable to the Internet community as a whole.
<br>
</dd><dd>Regards,<br>
</dd><dd>Bruce Tonkin<br>
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<div><b>Evang. Akinbo A. A. Cornerstone, Nigeria.</b></div>
<div>+2348064464545, +2348089118151 | 2BAC511D.<br>
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<div><a href="http://www.akinbo.ng" target="_blank">www.akinbo.ng</a> </div>
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<div style="font-family:arial;font-size:small"><b>Member, Executive Board of Directors</b>, </div>
<div style="font-family:arial;font-size:small">Nigeria Internet Registration Association (NiRA)</div>
<div style="font-family:arial;font-size:small"><a href="http://www.nira.org.ng/" style="color:rgb(17,85,204)" target="_blank">www.nira.org.ng</a> <span style="font-family:arial,sans-serif;font-size:13px"> </span><span style="font-family:arial,sans-serif;font-size:13px">|</span><span style="font-family:arial,sans-serif;font-size:13px"> </span><a href="mailto:akinbo@yips.org.ng" style="font-family:arial,sans-serif;font-size:13px" target="_blank">akinbo@nira.org.ng</a></div>
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<div>@niraworks</div>
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<div style="font-size:small"><b>Acting Chief Operating Officer,</b></div>
<div style="font-size:small">DNS Africa Magazine</div>
<div style="font-size:small"><a href="http://www.dnsafrica.org/" style="color:rgb(17,85,204)" target="_blank">www.dnsafrica.org</a><span style="font-family:arial"> </span><span style="font-size:13px"> </span><span style="font-size:13px">|</span><span style="font-size:13px"> </span><a href="mailto:akinbo@dnsafrica.org" target="_blank">akinbo@dnsafrica.org</a><br>
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<div style="font-size:small">@dnsafrica</div>
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<div><b><font face="arial">National Convener,</font></b></div>
<div style="font-size:small;font-family:arial">Nigerian Youth Coalition on Internet Governance (NG-YCIG)</div>
<div style="font-size:small;font-family:arial"><a href="http://www.nira.org.ng/" style="color:rgb(17,85,204)" target="_blank">www.ycig.org.ng</a></div>
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<div style="font-size:small;font-family:arial"><b>President,</b></div>
<div style="font-size:small;font-family:arial">Young Internet Professionals (YiPS)</div>
<div style="font-size:small;font-family:arial"><a href="http://wwwyips.org.ng/" style="font-family:arial,sans-serif;font-size:13px" target="_blank">www.yips.gnbo.com.ng</a><span style="font-family:arial,sans-serif;font-size:13px"> | </span><a href="mailto:akinbo@yips.org.ng" style="font-family:arial,sans-serif;font-size:13px" target="_blank">akinbo@yips.org.ng</a><br>
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<div><b>The RedHub.</b></div>
<div>12, Afonka Odebunmi Street, Lagos State.</div>
<div><a href="http://www.theredhub.org/" target="_blank">http://www.theredhub.org/</a></div>
<div><br>
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<div><b>National Focal Point ( Nigeria ) 2009-2011.</b></div>
<div>Global Youth Coalition on HIV/AIDS (a program of TakingITGlobal)</div>
<div><a href="http://www.youthaidscoalition.org" target="_blank">www.youthaidscoalition.org</a> <a href="http://www.takingitglobal.com" target="_blank">www.takingitglobal.com</a></div>
<div><a href="http://www.iaids.org" target="_blank">www.iaids.org</a></div>
<div>About me: <a href="http://profiles.tigweb.org/pscornerstone" target="_blank">
http://profiles.tigweb.org/pscornerstone</a></div>
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