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background-size: auto; background-position: 0% 0%; background-repeat: repeat
repeat;">I would like to strongly support Keith's proposal that we 1)
request the ability to consult legal expert in California corporate law
(as opposed to strictly nonprofit corporate law, as the new Benefits
Corporation is a vehicle we may want to consider) and 2) we ensure the
expert is not affiliated in any way with ICANN legal or any legal
contractor, such as Jones Day, which has a a historical
relationship with ICANN. To the extent any participant can or would be
allowed to be involved in the process by which such an expert is selected, I
certainly would like to be part of any such effort.</div>
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<blockquote style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px;
BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">-----Original
Message-----<br />
From: "Drazek, Keith" <kdrazek@verisign.com><br />
To: Adebunmi AKINBO <akinbo.adebunmi@gmail.com><br />
Cc: "accountability-cross-community@icann.org"
<accountability-cross-community@icann.org><br />
Date: Mon, 12 Jan 2015 04:57:27 +0000<br />
Subject: Re: [CCWG-Accountability] Regarding role of Board directors<br />
<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>
<div> </div>
<div>I believe the CCWG will likely need our own subject matter expert in
California not-for-profit corporate law. </div>
<div> </div>
<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>
<div><br />
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 />
</div>
<blockquote type="cite">
<div>
<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?
<div> </div>
<div>On the above, can we seek a legal opinion?</div>
<div>Its important to address this scenario.</div>
<div> </div>
<div>This can happen at anytime in the lifetime of ICANN.</div>
<div>-Akinbo.</div>
<div> </div>
<div> </div>
</div>
<div class="gmail_extra">
<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:
<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 />
<br />
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 />
<br />
At 10/01/2015 08:40 PM, Steve DelBianco wrote:<br />
<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 />
<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.†<br />
</dd>
</dl>
<br />
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?
<div>
<div class="h5"><br />
<br />
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 />
<br />
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 />
<br />
Best,<br />
Robin<br />
<br />
<br />
On Jan 10, 2015, at 4:43 PM, Bruce Tonkin wrote:<br />
<dl>
<dd>Hello Steve,
<dl>
<dd>ICANN Bylaws Article 6 Section 7 defines the duty of directors to
ICANN the Corporation: <br />
</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 />
</dd>
</dl>
<dl>
</dl>
</dd>
</dl>
<dl>
<dd>I have often heard you refer to that specific clause in the bylaws over
the past year.</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.</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".</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.</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.</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.</dd>
<dd>After the ATRT1 review, a set of governance guidelines were
established to make this clearer:</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></dd>
<dd>From the section on the role of directors:</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"</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."</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."</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. </dd>
<dd>Regards,</dd>
<dd>Bruce Tonkin</dd>
<dd>_______________________________________________</dd>
<dd>Accountability-Cross-Community mailing list</dd>
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<div>
<div dir="ltr">
<div><b>Evang. Akinbo A. A. Cornerstone, Nigeria.</b></div>
<div>+2348064464545, +2348089118151 | 2BAC511D.</div>
<div><a href="http://www.akinbo.ng" target="_blank">www.akinbo.ng</a>
</div>
<div> </div>
<div>
<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>
</div>
<div>@niraworks</div>
<div> </div>
<div>
<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></div>
<div style="font-size:small">@dnsafrica</div>
</div>
<div> </div>
<div>
<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> </div>
<div>
<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
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href="mailto:akinbo@yips.org.ng"
style="font-family:arial,sans-serif;font-size:13px" target="_blank">
akinbo@yips.org.ng</a></div>
</div>
<div> </div>
<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> </div>
<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>
<div> </div>
</div>
</div>
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