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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Thanks Jordan … I guess that begs the question then – in what forum would differences in transparency between the two models be in scope? Has it been considered at all? If not, I think we’ve missed an important issue. If it has … well, guide me Obi-Wan<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'>P<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'>Paul Rosenzweig<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="mailto:paul.rosenzweigesq@redbranchconsulting.com"><span style='color:#0563C1'>paul.rosenzweig@redbranchconsulting.com</span></a> <o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>O: +1 (202) 547-0660<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>M: +1 (202) 329-9650<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>VOIP: +1 (202) 738-1739<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'>Skype: paul.rosenzweig1066<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="http://www.redbranchconsulting.com/index.php?option=com_content&view=article&id=19&Itemid=9"><span style='color:#0563C1'>Link to my PGP Key</span></a><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><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'> Jordan Carter [mailto:jordan@internetnz.net.nz] <br><b>Sent:</b> Saturday, October 17, 2015 10:22 AM<br><b>To:</b> Paul Rosenzweig <paul.rosenzweig@redbranchconsulting.com><br><b>Cc:</b> Desiree Miloshevic <dmiloshevic@afilias.info>; Accountability Cross Community <accountability-cross-community@icann.org><br><b>Subject:</b> Re: [CCWG-ACCT] Summary words from engagement meeting<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>hi Paul<o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>The topic of our group was narrow - it was to understand the differences in enforceability between the SD and the SM models. We were not asked to, and did not, investigate all of the other issues.<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div><div><p class=MsoNormal>Jordan<o:p></o:p></p></div><div><p class=MsoNormal><o:p> </o:p></p></div></div><div><p class=MsoNormal><o:p> </o:p></p><div><p class=MsoNormal>On 17 October 2015 at 15:14, Paul Rosenzweig <<a href="mailto:paul.rosenzweig@redbranchconsulting.com" target="_blank">paul.rosenzweig@redbranchconsulting.com</a>> wrote:<o:p></o:p></p><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-right:0in'><div><div><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'>Dear Jordan/Desiree/Others</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'>I regret, of course, not being in Dublin with you – especially since Mathieu and Lise are buying the first round this evening at the pub.</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'>Had I been there, and had I been able to join your enforcement meeting there is one question I would have asked relating to our efforts to distinguish the Member and Designator models, viz: My understanding is that the Member of a corporation has certain statutory rights of inspection that would, if invoked, require the corporation to be more transparent. In particular, the right of inspection, as I understand it, extends to a right to inspect financial records of the corporation and to demand public access to the minutes of Board meetings. My further understanding is that these statutory rights are NOT available in the Designator model.</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'>Assuming my understanding is correct (and I am more than happy to be corrected), what was the reasoning behind the argument for giving up these inspection rights? To my mind they would be essential components of transparency and part of the key to maintaining good community insight into the operations of the corporation. And that, in turn, seems to me a strong argument for the Membership model. I’m not sure I see what the counter-argument is.</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'>Regards</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'>Paul</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'>Paul Rosenzweig</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'><a href="mailto:paul.rosenzweigesq@redbranchconsulting.com" target="_blank"><span style='color:#0563C1'>paul.rosenzweig@redbranchconsulting.com</span></a> </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'>O: <a href="tel:%2B1%20%28202%29%20547-0660" target="_blank">+1 (202) 547-0660</a></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'>M: <a href="tel:%2B1%20%28202%29%20329-9650" target="_blank">+1 (202) 329-9650</a></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'>VOIP: <a href="tel:%2B1%20%28202%29%20738-1739" target="_blank">+1 (202) 738-1739</a></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'>Skype: paul.rosenzweig1066</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto;text-align:justify'><span style='font-size:11.0pt;font-family:"Calibri",sans-serif;color:#1F497D'><a href="http://www.redbranchconsulting.com/index.php?option=com_content&view=article&id=19&Itemid=9" target="_blank"><span style='color:#0563C1'>Link to my PGP Key</span></a></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'> Jordan Carter [mailto:<a href="mailto:jordan@internetnz.net.nz" target="_blank">jordan@internetnz.net.nz</a>] <br><b>Sent:</b> Saturday, October 17, 2015 9:25 AM<br><b>To:</b> Desiree Miloshevic <<a href="mailto:dmiloshevic@afilias.info" target="_blank">dmiloshevic@afilias.info</a>><br><b>Cc:</b> Accountability Cross Community <<a href="mailto:accountability-cross-community@icann.org" target="_blank">accountability-cross-community@icann.org</a>><br><b>Subject:</b> Re: [CCWG-ACCT] Summary words from engagement meeting</span><o:p></o:p></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Thanks Desiree - copying to list for the record and to share your thoughts.<o:p></o:p></p><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>J<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>On 17 October 2015 at 12:19, Desiree Miloshevic <<a href="mailto:dmiloshevic@afilias.info" target="_blank">dmiloshevic@afilias.info</a>> wrote:<o:p></o:p></p><blockquote style='border:none;border-left:solid #CCCCCC 1.0pt;padding:0in 0in 0in 6.0pt;margin-left:4.8pt;margin-top:5.0pt;margin-right:0in;margin-bottom:5.0pt'><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Jordan <o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Myself, like Malcolm has said, have come out of our Enforcement model breakout session thinking that in the end there is not a huge advantage of the Sole Membership model<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>over the Single Designator Model.<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>However, we should explore other opportunities. For example we have not discussed enough the indirect Enforcement - the spill of the board<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>as that may end up being a faster and more efficient way than court proceedings, that would, in the end, keep deciding if something is<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>a fiduciary duty or not regardless of potentially reserved membership statutory powers and regardless of what the board suggests.<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Desiree<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>--<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p><div><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>On 17 Oct 2015, at 12:00, Jordan Carter <<a href="mailto:jordan@internetnz.net.nz" target="_blank">jordan@internetnz.net.nz</a>> wrote:<o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div></div><blockquote style='margin-top:5.0pt;margin-bottom:5.0pt'><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Here are my notes as outlined at the meeting, for the record:<o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'>1. We focused on IRP, because PTI would end up in an IRP.</span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'>2. IRP enforcement process is the same regardless of the model. If after arbitration award is granted, losing party objects, prevailing party must go to court for enforcement of arbitration award</span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'>3. In both models there is a legal person - the sole designator or member - that can be party to IRP if required.</span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'>4. In either model, fiduciary duties are important and have the effect of limiting the scope of what can be arbitrated in an IRP setting.</span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'>5. In the member model the board is limited in asserting that its action was protected as a fiduciary business judgment as to community powers reserved to the sole member. (That is, the scope of issues properly subject to arbitration is therefore broader in member model.)</span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'>6. Preferences were split among those present between the two models.</span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'> </span><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><span style='font-size:13.0pt;font-family:"Arial",sans-serif;color:#1A1A1A'>7. My personal preference on this dimension angles slightly towards the member model, because it provides for stronger enforceability of the community powers through the IRP or generally - that is, as said, it does that by removing the possibility of ICANN arguing that enforcement of those powers conflicts with fiduciary duties and so cannot be arbitrated.</span><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>-- <o:p></o:p></p><div><div><div><div><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Jordan Carter<br><br>Chief Executive <br><b>InternetNZ</b><o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><br><a href="tel:%2B64-4-495-2118" target="_blank">+64-4-495-2118</a> (office) | <a href="tel:%2B64-21-442-649" target="_blank">+64-21-442-649</a> (mob)<br>Email: <a href="mailto:jordan@internetnz.net.nz" target="_blank"><span style='color:#1155CC'>jordan@internetnz.net.nz</span></a> <br>Skype: jordancarter<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Web: <a href="http://www.internetnz.nz/" target="_blank">www.internetnz.nz</a> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><br><i>A better world through a better Internet </i><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div></div></div></div></div></div></div></div></div></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>_______________________________________________<br>Accountability-Cross-Community mailing list<br><a href="mailto:Accountability-Cross-Community@icann.org" target="_blank">Accountability-Cross-Community@icann.org</a><br><a href="https://mm.icann.org/mailman/listinfo/accountability-cross-community" target="_blank">https://mm.icann.org/mailman/listinfo/accountability-cross-community</a><o:p></o:p></p></blockquote></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div></div></blockquote></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><br><br clear=all><o:p></o:p></p><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>-- <o:p></o:p></p><div><div><div><div><div><div><div><div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Jordan Carter<br><br>Chief Executive <br><b>InternetNZ</b><o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><br><a href="tel:%2B64-4-495-2118" target="_blank">+64-4-495-2118</a> (office) | <a href="tel:%2B64-21-442-649" target="_blank">+64-21-442-649</a> (mob)<br>Email: <a href="mailto:jordan@internetnz.net.nz" target="_blank"><span style='color:#1155CC'>jordan@internetnz.net.nz</span></a> <br>Skype: jordancarter<o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'>Web: <a href="http://www.internetnz.nz" target="_blank">www.internetnz.nz</a> <o:p></o:p></p></div><div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><br><i>A better world through a better Internet </i><o:p></o:p></p></div><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'> <o:p></o:p></p></div></div></div></div></div></div></div></div></div></div></div></div></div></div></blockquote></div><p class=MsoNormal><br><br clear=all><o:p></o:p></p><div><p class=MsoNormal><o:p> </o:p></p></div><p class=MsoNormal>-- <o:p></o:p></p><div><div><div><div><div><div><div><div><div><p class=MsoNormal>Jordan Carter<br><br>Chief Executive <br><b>InternetNZ</b><o:p></o:p></p></div><div><p class=MsoNormal><br>+64-4-495-2118 (office) | +64-21-442-649 (mob)<br>Email: <a href="mailto:jordan@internetnz.net.nz" target="_blank"><span style='color:#1155CC'>jordan@internetnz.net.nz</span></a> <br>Skype: jordancarter<o:p></o:p></p></div><div><p class=MsoNormal>Web: <a href="http://www.internetnz.nz" target="_blank">www.internetnz.nz</a> <o:p></o:p></p></div><div><p class=MsoNormal><br><i>A better world through a better Internet </i><o:p></o:p></p></div><p class=MsoNormal><o:p> </o:p></p></div></div></div></div></div></div></div></div></div></div></body></html>