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<div>Members have the right to bring a “derivative action” (an action on behalf of the corporation) for breach of the charitable trust. A breach of charitable trust is essentially the equivalent of the a breach of “fiduciary duty” in the non-profit setting.</div>
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<div>I believe Chris and others have two questions:</div>
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<li>What does a breach of charitable trust encompass – i.e., how broad or narrow does it apply?</li><li>To what extent can the community control the manner in which claims for breach of charitable trust is pursued, i.e., can you require a majority of members to support such an action, can you/under what circumstances can you require a member to pursue such
claims in a particular forum such as the IRP?</li></ol>
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<div>Some people are concerned that if the cause of action is very broad and/or if there are no constraints on the circumstances under which a member can bring such a claim or the venue in which a member can bring a claim, this cause of action in particular
creates an incentive to litigate/delay/block consensus. </div>
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<div>Others believe that these concerns can be effectively addressed and that because the ICANN Board will comply with its legal requirements, enforceability reduced the likelihood of litigation. </div>
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<div>Still others seem concerned about any attempts to limit access to a court of competent jurisdiction, wherever that may be. </div>
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<div>We need to agree on the facts first, make sure that all stakeholders have access to those facts, and then determine what the multistakeholder community wants based on those facts. </div>
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<div>There is a lot of posturing and rhetoric going on – indeed I have been guilty of it. Let’s try to step back and get agreement on the answers to the two questions.</div>
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<div>Becky</div>
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<span style="font-size: 9pt; font-family: Arial, sans-serif;">J. Beckwith Burr<o:p></o:p></span></p>
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<b><span style="font-size: 9pt; font-family: Arial, sans-serif; color: rgb(6, 134, 88);">Neustar, Inc. /</span></b><span style="font-size: 9pt; font-family: Arial, sans-serif;"> Deputy General Counsel and Chief Privacy Officer<o:p></o:p></span></p>
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<span style="font-size: 9pt; font-family: Arial, sans-serif;">1775 Pennsylvania Avenue NW, Washington, DC 20006<o:p></o:p></span></p>
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<span style="font-size: 9pt; font-family: Arial, sans-serif; color: rgb(6, 134, 88);">Office</span><span style="font-size: 9pt; font-family: Arial, sans-serif;">: + 1.202.533.2932 <span style="color: rgb(6, 134, 88); "> Mobile</span>: +1.202.352.6367 <span style="color: rgb(6, 134, 88); ">/ <a href="mailto:becky.burr@neustar.biz">becky.burr@neustar.biz</a> /
www.neustar.biz</span></span></p>
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<span style="font-weight:bold">From: </span>Bruce Tonkin <<a href="mailto:Bruce.Tonkin@melbourneit.com.au">Bruce.Tonkin@melbourneit.com.au</a>><br>
<span style="font-weight:bold">Date: </span>Sunday, June 14, 2015 at 1:22 AM<br>
<span style="font-weight:bold">To: </span>Accountability Community <<a href="mailto:accountability-cross-community@icann.org">accountability-cross-community@icann.org</a>><br>
<span style="font-weight:bold">Subject: </span>Re: [CCWG-ACCT] [Acct-Legal] Memo - Revised Powers Chart, Voluntary Model<br>
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<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">From:
<a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.insightcced.org_uploads_publications_legal_ch3-2Dsummary-5Fof-5Fmember-5Frights.pdf&d=AwMGaQ&c=MOptNlVtIETeDALC_lULrw&r=62cJFOifzm6X_GRlaq8Mo8TjDmrxdYahOP8WDDkMr4k&m=Hf-X3CAkeccbdYdNQtm-L81XveOR3ltDRHfUg8Q7O3E&s=JlCuCkLCaFZLvX-yMyWf96Vxm9chS6UDsuaVitLqR48&e=">
http://www.insightcced.org/uploads/publications/legal/ch3-summary_of_member_rights.pdf</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">Examples of member rights under law include:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-18.0pt;mso-list:l0 level1 lfo1"><!--[if !supportLists]--><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D;mso-fareast-language:EN-US"><span style="mso-list:Ignore">-<span style="font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">The right to an annual report<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-18.0pt;mso-list:l0 level1 lfo1"><!--[if !supportLists]--><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D;mso-fareast-language:EN-US"><span style="mso-list:Ignore">-<span style="font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">The right to inspect a record of all member names, addresses, and voting rights<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-18.0pt;mso-list:l0 level1 lfo1"><!--[if !supportLists]--><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D;mso-fareast-language:EN-US"><span style="mso-list:Ignore">-<span style="font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">The right to inspect the articles and bylaws at the principal office in California<o:p></o:p></span></p>
<p class="MsoListParagraph" style="text-indent:-18.0pt;mso-list:l0 level1 lfo1"><!--[if !supportLists]--><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D;mso-fareast-language:EN-US"><span style="mso-list:Ignore">-<span style="font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">The right to inspect the accounting books and records and minutes of proceedings of the members, the board and the committees of the
Board<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">Depending on the number of members there are also certain rights with respect to appoint directors etc. For example in a membership organization
it would usually be the members that would elect and appoint directors, rather than the elaborate structures that we have to appoint directors.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">There may be others – but these are the sort of things that are established by law rather than by any bylaws. I believe that Chris is simply wanting
to make sure we all understand what they are.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">Regards,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);">Bruce Tonkin<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></p>
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<p class="MsoNormal"><a name="_MailEndCompose"><span style="font-size: 11pt; font-family: Calibri, sans-serif; color: rgb(31, 73, 125);"><o:p> </o:p></span></a></p>
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<p class="MsoNormal"><b><span lang="EN-US" style="font-size: 11pt; font-family: Calibri, sans-serif;">From:</span></b><span lang="EN-US" style="font-size: 11pt; font-family: Calibri, sans-serif;">
<a href="mailto:accountability-cross-community-bounces@icann.org">accountability-cross-community-bounces@icann.org</a> [<a href="mailto:accountability-cross-community-bounces@icann.org">mailto:accountability-cross-community-bounces@icann.org</a>]
<b>On Behalf Of </b>Chris Disspain<br>
<b>Sent:</b> Friday, 12 June 2015 5:27 PM<br>
<b>To:</b> Mathieu Weill<br>
<b>Cc:</b> <a href="mailto:accountability-cross-community@icann.org">accountability-cross-community@icann.org</a><br>
<b>Subject:</b> Re: [CCWG-ACCT] [Acct-Legal] Memo - Revised Powers Chart, Voluntary Model<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size: 10pt; font-family: Verdana, sans-serif; color: rgb(102, 102, 102);">Hi Mathieu,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size: 10pt; font-family: Verdana, sans-serif; color: rgb(102, 102, 102);">There will be a number of statutory powers that ‘members’ or ‘designators' have under Californian law and possibly US law. We need to know what
they are, make sure we’re OK with them and if we are not find out if we can change them. Hope that’s clearer. <o:p></o:p></span></p>
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<p class="p1"><span style="color:#666666"><o:p> </o:p></span></p>
<p class="p1"><span style="color:#666666"><o:p> </o:p></span></p>
<p class="p2">Cheers,<o:p></o:p></p>
<p class="p3"><o:p> </o:p></p>
<p class="p2">Chris<span style="color:#666666"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size: 10pt; font-family: Verdana, sans-serif; color: rgb(102, 102, 102);"><o:p> </o:p></span></p>
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