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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The primary advantage of having
<u>delegates</u> instead of <u>members</u> is that the organization may choose to assign fewer rights to delegates than are statutorily required to be assigned to members. Under California law, in addition to any other rights assigned by the organization’s
bylaws, a member has certain minimum rights, including: </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoNormal" style="mso-list:l0 level1 lfo1"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The right to inspect certain corporate records;</span><o:p></o:p></li><li class="MsoNormal" style="mso-list:l0 level1 lfo1"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The right to elect and remove directors;
</span><o:p></o:p></li><li class="MsoNormal" style="mso-list:l0 level1 lfo1"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Rights to receive notice of meetings;
</span><o:p></o:p></li><li class="MsoNormal" style="mso-list:l0 level1 lfo1"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The right to approve bylaw provisions affecting the rights of members; and,</span><o:p></o:p></li><li class="MsoNormal" style="mso-list:l0 level1 lfo1"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">The right to sue directors in derivative actions.</span><o:p></o:p></li></ul>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">On the other hand, delegates have no statutory rights and instead have only those rights or privileges assigned in an organization’s bylaws. Since there are no statutory rights,
there is also a significantly smaller body of case law on a delegate’s ability to exercise any rights he or she may have.
</span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">Therefore, if the intent is for the “members” to have fewer rights than the bulleted list above, then the “delegate” approach is likely preferred, however that would weaken
the outside member group. </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif"> Greg Shatan [mailto:gregshatanipc@gmail.com]
<br>
<b>Sent:</b> Tuesday, January 27, 2015 2:34 PM<br>
<b>To:</b> Jonathan Zuck<br>
<b>Cc:</b> Carlos Raul Gutierrez; accountability-cross-community@icann.org<br>
<b>Subject:</b> Re: [CCWG-ACCT] "Delegates": A Possible Alternative to Members<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Jonathan, <o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">I agree that delegates would not (or need not) be functionally different from members. It would be
<i>structurally </i>different, however, which may resolve certain concerns that have arisen regarding "joining" ICANN, turning ICANN into a membership organization, etc.<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Greg<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">On Tue, Jan 27, 2015 at 1:10 PM, Jonathan Zuck <<a href="mailto:JZuck@actonline.org" target="_blank">JZuck@actonline.org</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Definitely something to look into. I’m not sure that delegates would functionally be too much different
from members, though, and would require the same tough questions be answered as to powers. Meanwhile, I had my in-house counsel look into the questions that have been raised about membership and the preliminary results are encouraging. Started a new thread
with it.</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Jonathan</span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">From:</span></b><span style="font-size:11.0pt;font-family:"Calibri",sans-serif">
<a href="mailto:accountability-cross-community-bounces@icann.org" target="_blank">
accountability-cross-community-bounces@icann.org</a> [mailto:<a href="mailto:accountability-cross-community-bounces@icann.org" target="_blank">accountability-cross-community-bounces@icann.org</a>]
<b>On Behalf Of </b>Carlos Raul Gutierrez<br>
<b>Sent:</b> Tuesday, January 27, 2015 12:41 PM<br>
<b>To:</b> Greg Shatan<br>
<b>Cc:</b> <a href="mailto:accountability-cross-community@icann.org" target="_blank">
accountability-cross-community@icann.org</a><br>
<b>Subject:</b> Re: [CCWG-ACCT] "Delegates": A Possible Alternative to Members</span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">I think this is an interesting avenue, as some Board members, the ones who have NOT been nominated by the NomCom, have been "delegated" by its respective constituencies.<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Furthermore as Roelof Meijer suggested earlier on, the Board should be separated between the NomCom delegates as ExecBoard, while the "Delegates" could constitute a Supervisory
Board in the European style. Under this layered structure, we could develop the so much needed
<b><u>Internal</u></b> system of Review and Redress of the (exec)Board decisions, well under control of the constituencies.......<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><br clear="all">
<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Carlos Raúl Gutiérrez<br>
ISOC Costa Rica Chapter<br>
skype carlos.raulg<br>
<a href="tel:%2B506%208837%207176" target="_blank">+506 8837 7176</a> (New Phone number!!!!)<br>
________<br>
Apartado 1571-1000<br>
COSTA RICA<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">2015-01-27 10:03 GMT-06:00 Greg Shatan <<a href="mailto:gregshatanipc@gmail.com" target="_blank">gregshatanipc@gmail.com</a>>:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">California non-profit law states that a non-profit corporation may have delegates, who would have some or all of the powers of members. It is my understanding that these delegates
would not be "statutory" members of the organization (and that the organization would not be a "membership" non-profit).<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">It is possible that using delegates could solve some of the issues raised about members and the concept of "membership." I have not read beyond the statute itself, so consider
this only a rough starting point (and certainly not "legal advice").<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto">Here is the statutory language, from Cal. Corp. Code §5152:<o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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<pre><span style="color:black">5152. A corporation may provide in its bylaws for delegates having</span><o:p></o:p></pre>
<pre><span style="color:black">some or all of the authority of members. Where delegates are provided</span><o:p></o:p></pre>
<pre><span style="color:black">for, the bylaws shall set forth delegates' terms of office, any</span><o:p></o:p></pre>
<pre><span style="color:black">reasonable method for delegates' selection and removal, and any</span><o:p></o:p></pre>
<pre><span style="color:black">reasonable method for calling, noticing and holding meetings of</span><o:p></o:p></pre>
<pre><span style="color:black">delegates and may set forth the manner in which delegates may act by</span><o:p></o:p></pre>
<pre><span style="color:black">written ballot similar to Section 5513 for written ballot of members.</span><o:p></o:p></pre>
<pre><span style="color:black">Delegates may only act personally at a meeting or by written ballot</span><o:p></o:p></pre>
<pre><span style="color:black">and may not act by proxy. Delegates may be given a name other than</span><o:p></o:p></pre>
<pre><span style="color:black">"delegates."</span><o:p></o:p></pre>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#888888"> </span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><span style="color:#888888">Greg Shatan</span><o:p></o:p></p>
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<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"> <o:p></o:p></p>
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