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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US">Hello Jordan,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D;mso-fareast-language:EN-US">I am not a lawyer – but will provide my understanding at least.<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-size:11.0pt;font-family:"Calibri",sans-serif"><o:p> </o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">>> </span>So Bruce - would they have legal standing as individuals? Or as an unincorporated association, that is, collectively?<span style="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"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">They would have legal standing as individuals. The individuals would be occupying roles in the bylaws – i.e. chairs of SOs and ACs. They would take action
on behalf of the SOs and ACs, and have standing to legally enforce. <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"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">In a similar way I have a role on the Board as a voting Board director – but I could enforce actions against the organization as an individual.<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>
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<p class="MsoNormal"><span style="color:#1F497D">>> </span>Relatedly - has the board analysed whether the model is viable without a membership approach given the obligations directors hold (fiduciary obligations) in a non-membership system?<span style="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"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">I don’t understand the question. From my understanding Directors of a board have the same fiduciary obligations regardless of where it is membership or non-membership
organization. The arbitration model I think could apply to either type of organization as well.<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"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Regards,<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"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D">Bruce Tonkin<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"><span style="font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D"><o:p> </o:p></span></p>
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<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>
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<p class="MsoNormal">J<br>
<br>
On Sunday, 13 September 2015, Bruce Tonkin <<a href="mailto:Bruce.Tonkin@melbourneit.com.au">Bruce.Tonkin@melbourneit.com.au</a>> wrote:<o:p></o:p></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt">Hello Malcolm,<br>
<br>
>> Binding Enforcement: In California, final decisions may be turned into enforceable court judgments. So an arbitration decision issued following an MEM proceeding can be enforced in a court in California. "<br>
<br>
>> My first question is "By whom?" <br>
<br>
As per FAQ question no. 13, the answer is The MEM Issue Group.<br>
<br>
This MEM Issue Group could be comprised of the individual people serving as chairs of the participating SOs/ACs. These individuals would have legal standing to initiate arbitration and have legal standing to enforce the outcome of the arbitration in court.<br>
<br>
ICANN will indemnify the MEM Issue Group, and will bear the fees and expenses that might be incurred in any lawsuit arising out of the enforcement of a MEM final arbitration decision.<br>
<br>
There are other options - but this seems to be the simplest. More elaborate options include forming an unincorporated association for the purpose of initiating the arbitration and then seeking to enforce in court if necessary (which I hope is never necessary
- as any Board that I have been on would abide by the arbitration).<br>
<br>
I have attached the relevant docs for ease of reference.<br>
<br>
Regards,<br>
Bruce Tonkin<br>
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<o:p></o:p></p>
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<p class="MsoNormal"><br>
<br>
-- <br>
Jordan Carter<br>
Chief Executive, InternetNZ<o:p></o:p></p>
<p>+64-21-442-649 | <a href="mailto:jordan@internetnz.net.nz">jordan@internetnz.net.nz</a><o:p></o:p></p>
<p>Sent on the run, apologies for brevity<o:p></o:p></p>
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