<div dir="ltr"><div>Dear All,</div><div>Pls find attached my review of Legal Memo with some highliughts as well as some cut and paste from ICANN Matrix </div><div>Regards</div><div>Kavouss d</div></div><div class="gmail_extra"><br><div class="gmail_quote">2015-09-23 15:00 GMT+02:00 Gregory, Holly <span dir="ltr"><<a href="mailto:holly.gregory@sidley.com" target="_blank">holly.gregory@sidley.com</a>></span>:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div lang="EN-US" vlink="purple" link="blue">
<div>
<p class="MsoNormal"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">Thank you for that feedback, Jorge. We will consider whether to issue a revised draft clarifying the point.
<u></u><u></u></span></p><span>
<p class="MsoNormal"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
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<p class="MsoNormal"><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">HOLLY</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"> </span><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">GREGORY</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><br>
Partner<br>
<br>
</span><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">Sidley Austin LLP</span></b><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><br>
</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><a href="tel:%2B1%20212%20839%205853" target="_blank" value="+12128395853">+1 212 839 5853</a><br>
<a title="Click to send email to Gregory, Holly" href="mailto:holly.gregory@sidley.com" target="_blank">holly.gregory@sidley.com</a><u></u><u></u></span></p>
</div>
<p class="MsoNormal"><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt"> </span><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u><u></u></span></p>
</span><div>
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<p class="MsoNormal" style="margin-left:0.5in"><b><span style="font-family:"Tahoma","sans-serif";font-size:10pt">From:</span></b><span style="font-family:"Tahoma","sans-serif";font-size:10pt"> <a href="mailto:Jorge.Cancio@bakom.admin.ch" target="_blank">Jorge.Cancio@bakom.admin.ch</a> [mailto:<a href="mailto:Jorge.Cancio@bakom.admin.ch" target="_blank">Jorge.Cancio@bakom.admin.ch</a>]
<br>
<b>Sent:</b> Wednesday, September 23, 2015 8:56 AM<br>
<b>To:</b> Gregory, Holly; <a href="mailto:jordan@internetnz.net.nz" target="_blank">jordan@internetnz.net.nz</a>; <a href="mailto:accountability-cross-community@icann.org" target="_blank">accountability-cross-community@icann.org</a><br>
<b>Subject:</b> AW: [CCWG-ACCT] Fwd: [Acct-Legal] Comparison of CCWG CMSM Proposal and ICANN Board MEM Proposal<u></u><u></u></span></p>
</div>
</div><div><div class="h5">
<p class="MsoNormal" style="margin-left:0.5in"><u></u> <u></u></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">Thanks for the prompt reply – however I feel that your Memo is a bit too “absolute” in its wording as regards to the exclusion of this
specific power from the MEM (p.4: “</span><span style="font-family:"Calibri","sans-serif"">As noted below, the MEM process would not be available to challenge a failure by the Board to follow this procedure.”)</span><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">,
while the Board Matrix is apparently clear in stating that Board actions not complying would fall into the MEM (p. 61 Matrix: “<i>In the event the Board fails to abide by these processes, or the community believes that the Board has taken a decision in these
areas that is inconsistent with the Mission and Core Values, </i></span><i><span style="color:red;font-family:"Calibri","sans-serif";font-size:11pt">the MEM will provide binding arbitration over that issue</span></i><i><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">.
In addition, the community will have the ability to remove individual Board Directors or recall the Board</span></i><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">.”)…<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">Jorge
<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
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<p class="MsoNormal" style="margin-left:0.5in"><b><span lang="DE" style="font-family:"Calibri","sans-serif";font-size:11pt">Von:</span></b><span lang="DE" style="font-family:"Calibri","sans-serif";font-size:11pt"> Gregory, Holly [<a href="mailto:holly.gregory@sidley.com" target="_blank">mailto:holly.gregory@sidley.com</a>]
<br>
<b>Gesendet:</b> Mittwoch, 23. September 2015 14:29<br>
<b>An:</b> Cancio Jorge BAKOM <<a href="mailto:Jorge.Cancio@bakom.admin.ch" target="_blank">Jorge.Cancio@bakom.admin.ch</a>>;
<a href="mailto:jordan@internetnz.net.nz" target="_blank">jordan@internetnz.net.nz</a>; <a href="mailto:accountability-cross-community@icann.org" target="_blank">
accountability-cross-community@icann.org</a><br>
<b>Betreff:</b> RE: [CCWG-ACCT] Fwd: [Acct-Legal] Comparison of CCWG CMSM Proposal and ICANN Board MEM Proposal<u></u><u></u></span></p>
</div>
</div>
<p class="MsoNormal" style="margin-left:0.5in"><span lang="DE-CH"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif"">Thank you for your questions Jorge. Let me try to quickly respond in the interest of resolving the apparent confusion. <u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif""><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif"">In the Frequently Asked Questions provided by the Board regarding community enforceability, see the answer to Q3.
<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif""><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif"">The point is that outside of a member context there are limits on what powers can be given to the community in a manner that would be enforceable. That is why
we wrote: <u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif""><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:0.75in"><span style="font-family:"Calibri","sans-serif"">As a legal matter, there is a level of uncertainty arising to doubt that Bylaw provisions providing these rights (Budget veto etc) to the community as represented
by the SOs and ACs would be legally cognizable, let alone enforceable, outside of a member context.
<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif""><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif"">We provided Jones Day and ICANN Legal the long chart yesterday morning for comments. And we greatly appreciate that they provided comments in a short period of time,
which we reviewed and incorporated based on our judgment. Jones Day and ICANN Legal were not provided the opportunity to review the memo due to our time constraints but we of course welcome and would value their comments.
<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif""><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:0.5in"><span style="font-family:"Calibri","sans-serif"">Kind regards, Holly<u></u><u></u></span></p>
<div>
<p class="MsoNormal" style="margin-left:0.5in">
<b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">HOLLY</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"> </span><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">GREGORY</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><br>
Partner<br>
<br>
</span><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">Sidley Austin LLP</span></b><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><br>
</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><a href="tel:%2B1%20212%20839%205853" target="_blank" value="+12128395853">+1 212 839 5853</a><br>
<a title="Click to send email to Gregory, Holly" href="mailto:holly.gregory@sidley.com" target="_blank">holly.gregory@sidley.com</a><u></u><u></u></span></p>
</div>
<p class="MsoNormal" style="margin-left:0.5in"><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt"> </span><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u><u></u></span></p>
<div>
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<p class="MsoNormal" style="margin-left:1in"><b><span style="font-family:"Tahoma","sans-serif";font-size:10pt">From:</span></b><span style="font-family:"Tahoma","sans-serif";font-size:10pt">
<a href="mailto:accountability-cross-community-bounces@icann.org" target="_blank">accountability-cross-community-bounces@icann.org</a> [<a href="mailto:accountability-cross-community-bounces@icann.org" target="_blank">mailto:accountability-cross-community-bounces@icann.org</a>]
<b>On Behalf Of </b><a href="mailto:Jorge.Cancio@bakom.admin.ch" target="_blank">Jorge.Cancio@bakom.admin.ch</a><br>
<b>Sent:</b> Wednesday, September 23, 2015 4:39 AM<br>
<b>To:</b> <a href="mailto:jordan@internetnz.net.nz" target="_blank">jordan@internetnz.net.nz</a>;
<a href="mailto:accountability-cross-community@icann.org" target="_blank">accountability-cross-community@icann.org</a><br>
<b>Subject:</b> Re: [CCWG-ACCT] Fwd: [Acct-Legal] Comparison of CCWG CMSM Proposal and ICANN Board MEM Proposal<u></u><u></u></span></p>
</div>
</div>
<p class="MsoNormal" style="margin-left:1in"><u></u> <u></u></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">Thanks Jordan, for forwarding these valuable inputs.<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">I’m going through the Memos and I just stumbled on an issue where I’m not sure whether the Memo reflects or not the Board proposal.
On page 4 of the “Memorandum” it is said that the community power on budget, strategic and operating plan is “not subject to binding arbitration under the Board proposal” – but on page 61 of the Board Matrix it is affirmed that “<i>In the event the Board fails
to abide by these processes, or the community believes that the Board has taken a decision in these areas that is inconsistent with the Mission and Core Values,
</i></span><i><span style="color:red;font-family:"Calibri","sans-serif";font-size:11pt">the MEM will provide binding arbitration over that issue</span></i><i><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">. In addition, the
community will have the ability to remove individual Board Directors or recall the Board</span></i><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">.”<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">Am I missing something?<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">And, this leads me to a more general question: at the beginning of the Memo it is stated that Jones Day was consulted in order to
avoid misunderstandings – did they reply and confirm that there were none?<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">Thanks and regards<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt">Jorge
<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span style="color:rgb(31,73,125);font-family:"Calibri","sans-serif";font-size:11pt"><u></u> <u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><b><span lang="DE" style="font-family:"Calibri","sans-serif";font-size:11pt">Von:</span></b><span lang="DE" style="font-family:"Calibri","sans-serif";font-size:11pt">
<a href="mailto:accountability-cross-community-bounces@icann.org" target="_blank">accountability-cross-community-bounces@icann.org</a> [<a href="mailto:accountability-cross-community-bounces@icann.org" target="_blank">mailto:accountability-cross-community-bounces@icann.org</a>]
<b>Im Auftrag von </b>Jordan Carter<br>
<b>Gesendet:</b> Mittwoch, 23. September 2015 06:20<br>
<b>An:</b> Accountability Cross Community <<a href="mailto:accountability-cross-community@icann.org" target="_blank">accountability-cross-community@icann.org</a>><br>
<b>Betreff:</b> [CCWG-ACCT] Fwd: [Acct-Legal] Comparison of CCWG CMSM Proposal and ICANN Board MEM Proposal<u></u><u></u></span></p>
<p class="MsoNormal" style="margin-left:1in"><span lang="DE-CH"><u></u> <u></u></span></p>
<div>
<p class="MsoNormal" style="margin-left:1in"><span lang="DE-CH">Hi all - forwarded to get this to you ASAP, not sure who was meant to.<u></u><u></u></span></p>
<div>
<p class="MsoNormal" style="margin-left:1in"><span lang="DE-CH">J<u></u><u></u></span></p>
</div>
<div>
<p class="MsoNormal" style="margin-left:1in"><span lang="DE-CH"><u></u> <u></u></span></p>
<div>
<p class="MsoNormal" style="margin-right:0in;margin-bottom:12pt;margin-left:1in">
<span lang="DE-CH">---------- Forwarded message ----------<br>
From: <b>Gregory, Holly</b> <<a href="mailto:holly.gregory@sidley.com" target="_blank">holly.gregory@sidley.com</a>><br>
Date: 23 September 2015 at 14:04<br>
Subject: [Acct-Legal] Comparison of CCWG CMSM Proposal and ICANN Board MEM Proposal<br>
To: "<a href="mailto:thomas@rickert.net" target="_blank">thomas@rickert.net</a>" <<a href="mailto:thomas@rickert.net" target="_blank">thomas@rickert.net</a>>, "<a href="mailto:mathieu.weill@afnic.fr" target="_blank">mathieu.weill@afnic.fr</a>" <<a href="mailto:mathieu.weill@afnic.fr" target="_blank">mathieu.weill@afnic.fr</a>>,
León Felipe Sánchez Ambía <<a href="mailto:leonfelipe@sanchez.mx" target="_blank">leonfelipe@sanchez.mx</a>>, "<a href="mailto:ccwg-accountability5@icann.org" target="_blank">ccwg-accountability5@icann.org</a>" <<a href="mailto:ccwg-accountability5@icann.org" target="_blank">ccwg-accountability5@icann.org</a>>,
Alice Jansen <<a href="mailto:alice.jansen@icann.org" target="_blank">alice.jansen@icann.org</a>>, Grace Abuhamad <<a href="mailto:grace.abuhamad@icann.org" target="_blank">grace.abuhamad@icann.org</a>><br>
Cc: Sidley ICANN CCWG <<a href="mailto:sidleyicannccwg@sidley.com" target="_blank">sidleyicannccwg@sidley.com</a>>, ICANN-Adler <<a href="mailto:ICANN@adlercolvin.com" target="_blank">ICANN@adlercolvin.com</a>><u></u><u></u></span></p>
<div>
<div>
<p class="MsoNormal" style="margin-left:1in">
Dear Co-Chairs, Members and Participants of CCWG, <u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
<u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
Attached please find three documents to assist in preparation for our meeting in L.A.:<u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
<u></u><u></u></p>
<p style="margin-left:1in"><span style="font-family:Symbol;font-size:11pt">·</span><span style="font-size:7pt">
</span><span style="font-family:"Calibri","sans-serif";font-size:11pt">A memo from Sidley and Adler with our high level observations regarding comparison between the Board Proposal and the CCWG Proposal.
</span><u></u><u></u></p>
<p style="margin-left:1in"><a name="14ffa4ae6cbcb0f6_14ff7f32e467f89f__GoBack"></a><span style="font-family:Symbol;font-size:11pt">·</span><span style="font-size:7pt">
</span><span style="font-family:"Calibri","sans-serif";font-size:11pt">A Summary Comparison of Key Characteristics of CMSM Model and Board Proposal – this or something along these lines will be expanded out in the next several days to include the Sole Designator
model as requested on today’s call</span><u></u><u></u></p>
<p style="margin-left:1in"><span style="font-family:Symbol;font-size:11pt">·</span><span style="font-size:7pt">
</span><span style="font-family:"Calibri","sans-serif";font-size:11pt">Comparison of CCWG 2<sup>nd</sup> Draft Proposal (Community Mechanism as Sole Member) and ICANN Board Proposal (Comparison)</span><u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
We look forward to seeing you in L.A.,<u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
<u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
Holly and Rosemary<u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
<span style="color:rgb(31,73,125)"> </span><u></u><u></u></p>
<div>
<p class="MsoNormal" style="margin-left:1in">
<b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif"">HOLLY</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif""> <b>J. GREGORY</b><br>
</span><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt">Partner and Co-Chair<br>
Global Corporate Governance & Executive Compensation Practice<br>
<br>
</span><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt">Sidley Austin LLP</span></b><b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><br>
</span></b><span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:9pt"><a href="tel:%2B1%20212%20839%205853" target="_blank">+1 212 839 5853</a><br>
<a title="Click to send email to Gregory, Holly" href="mailto:holly.gregory@sidley.com" target="_blank">holly.gregory@sidley.com</a></span><u></u><u></u></p>
</div>
<p class="MsoNormal" style="margin-left:1in">
<span style="color:rgb(31,73,125);font-family:"Arial","sans-serif";font-size:10pt"> </span><u></u><u></u></p>
<p class="MsoNormal" style="margin-left:1in">
<u></u><u></u></p>
</div>
<p style="margin-left:1in"> <u></u><u></u></p>
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<p class="MsoNormal" style="margin-left:1in"><span lang="DE-CH">-- <u></u><u></u></span></p>
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<p class="MsoNormal" style="margin-left:1in"><span lang="DE-CH">Jordan Carter<br>
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Chief Executive <br>
<b>InternetNZ</b><u></u><u></u></span></p>
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<a href="tel:%2B64-4-495-2118" target="_blank" value="+6444952118">+64-4-495-2118</a> (office) | <a href="tel:%2B64-21-442-649" target="_blank" value="+6421442649">+64-21-442-649</a> (mob)<br>
Email: <a href="mailto:jordan@internetnz.net.nz" target="_blank"><span style="color:rgb(17,85,204)">jordan@internetnz.net.nz</span></a> <br>
Skype: jordancarter<u></u><u></u></span></p>
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<p class="MsoNormal" style="margin-left:1in"><span lang="DE-CH">Web: <a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__www.internetnz.nz&d=BQMGaQ&c=Od00qP2XTg0tXf_H69-T2w&r=1-1w8mU_eFprE2Nn9QnYf01XIV88MOwkXwHYEbF2Y_8&m=lWkPxTSoa5ayA0nk7iZO5qPxgajnB8c1XdKQl0aDvFk&s=H78gy9fUnDZjSRP-wKqyDxXpoiBY4U9sKKGe-CIMT2o&e=" target="_blank">
www.internetnz.nz</a> <u></u><u></u></span></p>
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<i>A better world through a better Internet </i><u></u><u></u></span></p>
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