<div dir="ltr"><div>Dear Seue</div><div>Unfortunately, dispute Resolution was a general term used and does it in no way replace IRP.Pls read my eralier message in this regard</div><div><br></div><div>BR</div><div><br></div><div>Kavouss </div></div><div class="gmail_extra"><br><div class="gmail_quote">2015-10-02 11:43 GMT+02:00 <span dir="ltr"><<a href="mailto:Jorge.Cancio@bakom.admin.ch" target="_blank">Jorge.Cancio@bakom.admin.ch</a>></span>:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex">
<div lang="DE-CH" vlink="#954F72" link="#0563C1" bgcolor="white">
<div>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt">Hi Mathieu,<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt">After reviewing the legal memo you just sent and what it says about fiduciary duties, I feel that the question I’m
presenting is not tackled in that Memo and that we still would largely benefit right now from a better understanding of the question I was proposing.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Times New Roman",serif;font-size:12pt">I’ve tried to specify the question a bit more, and it would look as follows:<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Times New Roman",serif;font-size:12pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="font-family:"Times New Roman",serif;font-size:12pt">Is there any means under Californian Law that would allow to subject the exercise of fiduciary duties to objective and controllable
standards? For example, could the following or similar means be acceptable and usable under Californian law:<u></u><u></u></span></p>
<p style="margin-left:36pt">
<u></u><span lang="EN-US" style="font-family:Symbol;font-size:12pt"><span>·<span style="font:7pt/normal "Times New Roman";font-size-adjust:none;font-stretch:normal">
</span></span></span><u></u><span lang="EN-US" style="font-family:"Times New Roman",serif;font-size:12pt">concretizing these fiduciary duties in the Bylaws;</span><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u><u></u></span></p>
<p style="margin-left:36pt">
<u></u><span lang="EN-US" style="font-family:Symbol;font-size:12pt"><span>·<span style="font:7pt/normal "Times New Roman";font-size-adjust:none;font-stretch:normal">
</span></span></span><u></u><span lang="EN-US" style="font-family:"Times New Roman",serif;font-size:12pt">subjecting their correct interpretation to arbitration;</span><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u><u></u></span></p>
<p style="margin-left:36pt">
<u></u><span lang="EN-US" style="font-family:Symbol;font-size:12pt"><span>·<span style="font:7pt/normal "Times New Roman";font-size-adjust:none;font-stretch:normal">
</span></span></span><u></u><span lang="EN-US" style="font-family:"Times New Roman",serif;font-size:12pt">imposing special requirements on the rationale needed to be provided if they are used to override community decisions;</span><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u><u></u></span></p>
<p style="margin-left:36pt">
<u></u><span lang="EN-US" style="font-family:Symbol;font-size:12pt"><span>·<span style="font:7pt/normal "Times New Roman";font-size-adjust:none;font-stretch:normal">
</span></span></span><u></u><span lang="EN-US" style="font-family:"Times New Roman",serif;font-size:12pt">imposing extra-supermajorities in the Board in order to being able to invoke such duties?</span><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt">The underlying idea is IMHO very relevant to our present discussions on the Model, especially for those of us who
are not experts in Californian Corporate Law: i.e. is there a legal means to subject those fiduciary duties to specific and objective standards and/or third-party control? If there are, could we use those means (if they exist) to develop our model? If they
do not exist, or are too limited, this might speak for a membership structure.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt">Please let me know if you can proceed with this.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US" style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt">Regards<u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt"><u></u> <u></u></span></p>
<p class="MsoNormal"><span style="color:windowtext;font-family:"Times New Roman",serif;font-size:12pt">Jorge<br>
<br>
</span><span style="color:rgb(31,73,125)"><u></u><u></u></span></p>
<p class="MsoNormal"><span style="color:rgb(31,73,125)"><u></u> <u></u></span></p>
<div>
<div style="border-width:1pt medium medium;border-style:solid none none;border-color:rgb(225,225,225) currentColor currentColor;padding:3pt 0cm 0cm">
<p class="MsoNormal"><b><span lang="DE" style="color:windowtext">Von:</span></b><span lang="DE" style="color:windowtext"> Mathieu Weill [mailto:<a href="mailto:mathieu.weill@afnic.fr" target="_blank">mathieu.weill@afnic.fr</a>]
<br>
<b>Gesendet:</b> Freitag, 2. Oktober 2015 11:06<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:accountability-cross-community@icann.org" target="_blank">accountability-cross-community@icann.org</a><br>
<b>Cc:</b> <a href="mailto:leonfelipe@sanchez.mx" target="_blank">leonfelipe@sanchez.mx</a>; <a href="mailto:thomas@rickert.net" target="_blank">thomas@rickert.net</a><br>
<b>Betreff:</b> Re: question on fiduciary duties and their objectivity<u></u><u></u></span></p>
</div>
</div><div><div class="h5">
<p class="MsoNormal"><span lang="EN-US"><u></u> <u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">Dear Jorge, <br>
<br>
You are rightly pointing out one of the key areas where a shared understanding of the concept and consequences has not been achieved so far. $<br>
<br>
Our 2nd report highlighted this issue for further investigation during WS2, but I note that some comments mentioned that this should not be clarified as part of WS1. The exact wording of our work item was :<br>
<br>
</span><span lang="EN-US" style="font-size:12pt"><u></u><u></u></span></p>
<blockquote style="margin-top:5pt;margin-bottom:5pt">
<p style="margin-left:72pt"><span lang="EN-US">o</span><span lang="EN-US" style="font-size:7pt">
</span><span lang="EN-US">Clarifying understanding of the fiduciary duties of Board Directors and related expectations concerning Director behavior for the Board.</span><span lang="EN-US"><u></u><u></u></span></p>
</blockquote>
<p class="MsoNormal" style="margin-bottom:12pt"><span style="font-family:"Times New Roman",serif;font-size:12pt"><br>
Past work on the topic include several mentions in legal memos. Most notable is on page 4 of one of the initial memos from our Counsel dated 12 april (<a href="https://community.icann.org/download/attachments/52890082/Combined%20CCWG%20Cover%20Memo%20and%20Templates.pdf?version=3&modificationDate=1428797461000&api=v2" target="_blank">https://community.icann.org/download/attachments/52890082/Combined%20CCWG%20Cover%20Memo%20and%20Templates.pdf?version=3&modificationDate=1428797461000&api=v2</a>)
which addresses the balance between accountability and decision making authority.
<br>
<br>
If we were to pursue this at this stage, we probably should flesh out some questions to direct work from our Counsel. What would be the type of questions you would raise Jorge ? (or others) ?
<br>
<br>
Best<br>
Mathieu<br>
<u></u><u></u></span></p>
<div>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;font-size:12pt">Le 01/10/2015 10:41,
<a href="mailto:Jorge.Cancio@bakom.admin.ch" target="_blank">Jorge.Cancio@bakom.admin.ch</a> a écrit :<u></u><u></u></span></p>
</div>
<blockquote style="margin-top:5pt;margin-bottom:5pt">
<p class="MsoNormal"><span lang="EN-US">Dear all,<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">During the debates we had on the last conference call I put forward a question which I feel could be important to better understand under Californian corporate law.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">This is whether there are any means to subject the exercise of “fiduciary duties” (by the Board) to objective standards.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">As I have understood the discussion so far, the membership model allows the member to override “fiduciary duties” of the Board. However the member itself has no fiduciary duties vis-à-vis the organization.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">On the other hand, fiduciary duties are apparently a useful tool within corporate law, as it imposes a duty to care for the welfare of the whole of the organization.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">The argument which is made by some, as far as I understand it, is that there is however a problem in the exercise of “fiduciary duties” as it would provide the Board with an “arbitrary” power, e.g. to override community
decisions (in exercise of community powers) without being bound to any objective standards.<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">Considering all this, my question (to the Lawyers, if this is certified as a question to them) would be: is there any means under Californian Law (or other US jurisdictions…) that would allow to subject the exercise of
fiduciary duties to objective standards? (e.g. be it through concretizing these duties in the Bylaws, subjecting them to arbitration, imposing special requirements on the rationale needed to be provided if they are used to override community decisions, or,
for instance, imposing extra-supermajorities in the Board in order to being able to invoke such duties?)
<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">Hope this helps,<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">Regards<u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US"> <u></u><u></u></span></p>
<p class="MsoNormal"><span lang="EN-US">Jorge <u></u><u></u></span></p>
</blockquote>
<p class="MsoNormal"><span style="font-family:"Times New Roman",serif;font-size:12pt"><br>
<br>
<u></u><u></u></span></p>
<pre>-- <u></u><u></u></pre>
<pre>*****************************<u></u><u></u></pre>
<pre>Mathieu WEILL<u></u><u></u></pre>
<pre>AFNIC - directeur général<u></u><u></u></pre>
<pre>Tél: <a href="tel:%2B33%201%2039%2030%2083%2006" target="_blank" value="+33139308306">+33 1 39 30 83 06</a><u></u><u></u></pre>
<pre><a href="mailto:mathieu.weill@afnic.fr" target="_blank">mathieu.weill@afnic.fr</a><u></u><u></u></pre>
<pre>Twitter : @mathieuweill<u></u><u></u></pre>
<pre>*****************************<u></u><u></u></pre>
</div></div></div>
</div>
<br>_______________________________________________<br>
Accountability-Cross-Community mailing list<br>
<a href="mailto:Accountability-Cross-Community@icann.org">Accountability-Cross-Community@icann.org</a><br>
<a href="https://mm.icann.org/mailman/listinfo/accountability-cross-community" target="_blank" rel="noreferrer">https://mm.icann.org/mailman/listinfo/accountability-cross-community</a><br>
<br></blockquote></div><br></div>