[client com] Change of location of PTI in Byalws

Wed Jul 27 20:37:07 UTC 2016

Dear Matt (with a copy to the Client Committee),

We discussed the question you posted below on the last CWG call.  Under California law, the principal office may be located outside of California.  It was suggested on a CWG call that we conform the PTI provision to the ICANN bylaws provision on this point.  We have included this proposal in the draft comment letter on the PTI bylaws which we will circulate shortly.

In terms of approving a future change to the principal office location, EC approval is not required for a PTI bylaw amendment to change PTI’s principal office.  Under the PTI bylaws, bylaw amendments require the approval of ICANN (as the member) and at least four of the five directors of PTI.  Any requirements under the ICANN bylaws for PTI bylaw amendments must also be met.  Under the ICANN bylaws, the EC has a rejection or “veto” right for certain PTI bylaw amendments, including a change from PTI’s status as a California nonprofit corporation, but not for a change to the location of PTI’s principal office.

If EC approval of changes to PTI’s principal office is something the CWG wishes to pursue, CWG could propose that the provision addressing PTI’s principal office be included in the PTI articles instead of the bylaws.  The EC must approve any amendment to the PTI articles, so moving this provision to the PTI articles would give the EC the right to approve any change to PTI’s principal office.   If that change is to be proposed, it must be included in the comment letter which is due July 31.

Best regards,
Sharon

SHARON R. FLANAGAN

SIDLEY AUSTIN LLP
+1 415 772 1271
sflanagan at sidley.com<mailto:sflanagan at sidley.com>

From: matthew shears [mailto:mshears at cdt.org]
Sent: Tuesday, July 26, 2016 7:32 AM
To: Flanagan, Sharon; jrobinson at afilias.info; 'Lise Fuhr'
Subject: Change of location of PTI in Byalws

Hi all

On the call of the 13th I raised an issue about the powers of the PTI Board to possibly change the principle office of PTI by resolution.  I sought clarification if this was indeed intended, even possible given that it is a subsidiary of ICANN, whether or not the ICANN Board and importantly the empowered community or the OCs would have any say in the matter (surely they should given the purpose of PTI).  ICANN cannot change its location without the empowered community -  that should be the same in the case of PTI.  We don't have fundamental or standard bylaws for PTI and this power is not one of those expressly given to the empowered community.

Perhaps I missed the feedback on this but wanted to raise it again just in case.

Thanks.

Matthew

Here is the questions I raised on the call:

Matthew Shears: Okay. This actually has to do with just a - just seeking a clarification. I'm sorry to take you back to maybe Sidley could provide it back to
(unintelligible) of the PTI bylaws where it talks about the principle office for transaction of business of a corporation.  And it says in that article that the principle office may be established at any
place or places within or without the State of California by resolution of the Board.
And I was just wondering if in this particular case we could have a situation where the Board of PTI decided to move the principle office of PTI to some other location outside the State of California or indeed outside the United States possibly.  And if that were the case, would there be any mechanism by which the ICANN Board or indeed the empowered community would have a say over that decision? And if somebody could clarify that, that would be greatly appreciated. Thanks.

Sharon Flanagan: Matthew, I need to check on whether that office could be outside of California. It wouldn't change - it wouldn't change the fact that the PTI is a California non-profit corporation. It would just be the physical location. But let me get back. I'll send an email around to you all on that.

On 26/07/2016 14:01, Flanagan, Sharon wrote:

Dear all-

Below is proposed language for the PTI purpose that Sidley and ICANN legal worked through. We believe this language captures the intent of the CWG proposal while also meeting the tax requirements for a non-profit "supporting organization".

Best regards,
Sharon

"The specific purpose of the corporation is to operate exclusively to carry out the purposes of the Internet Corporation for Assigned Names and Numbers (“ICANN”) by performing the IANA functions on behalf of ICANN."

Sharon R. Flanagan
Sidley Austin LLP
SF tel: 415-772-1271
PA tel: 650-565-7008
Email: sflanagan at sidley.com<mailto:sflanagan at sidley.com>

From: Gomes, Chuck [mailto:cgomes at verisign.com]
Sent: Wednesday, July 20, 2016 12:49 PM
To: matthew shears <mshears at cdt.org><mailto:mshears at cdt.org>; Seun Ojedeji <seun.ojedeji at gmail.com><mailto:seun.ojedeji at gmail.com>
Cc: Lise Fuhr <lise.fuhr at difo.dk><mailto:lise.fuhr at difo.dk>; Andrew Sullivan <ajs at anvilwalrusden.com><mailto:ajs at anvilwalrusden.com>; cwg-stewardship at icann.org<mailto:cwg-stewardship at icann.org> <cwg-stewardship at icann.org><mailto:cwg-stewardship at icann.org>; jrobinson at afilias.info<mailto:jrobinson at afilias.info> <jrobinson at afilias.info><mailto:jrobinson at afilias.info>; Flanagan, Sharon
Subject: RE: [CWG-Stewardship] Purpose of PTI

Let’s let Sharon and Sam help us word this as planned on the call yesterday.

Chuck

From: matthew shears [mailto:mshears at cdt.org]
Sent: Wednesday, July 20, 2016 1:07 PM
To: Seun Ojedeji
Cc: Lise Fuhr; Andrew Sullivan; cwg-stewardship at icann.org<mailto:cwg-stewardship at icann.org>; jrobinson at afilias.info<mailto:jrobinson at afilias.info>; Flanagan, Sharon; Gomes, Chuck
Subject: Re: [CWG-Stewardship] Purpose of PTI

Not sure I see the need or value of that additional clause.   Unless there is a very good legal reason for doing so we should avoid layering this with unnecessary qualifiers.

On 20/07/2016 17:51, Seun Ojedeji wrote:

That could work as well(even though I prefer Andrew's modification), but not without including "...exclusively for the benefit of,.." in the text which will then result to the following:

"The specific purpose of the corporation is to perform the IANA functions on behalf of, and exclusively for the benefit of, the Internet Corporation for Assigned Names and Numbers (“*ICANN*”)."

That ensures that PTI remains member(i.e ICANN) driven.

Regards
Sent from my LG G4
Kindly excuse brevity and typos

On 20 Jul 2016 5:41 p.m., "matthew shears" <mshears at cdt.org<mailto:mshears at cdt.org>> wrote:

I'm wondering if we even need to go to that next level.  In the Services Agreement draft it says:   "WHEREAS, following the IANA Stewardship Transition, PTI will perform the IANA
functions on behalf of ICANN;"

So rather than making it more vague/complicated than necessary, why wouldn't the PTI bylaws state the following:

"The specific purpose of the corporation is to perform the IANA functions on behalf of the Internet Corporation for Assigned Names and Numbers (“*ICANN*”)."

That is its purpose.  Thanks.

Matthew

On 20/07/2016 17:18, Jonathan Robinson wrote:

Copying in Sharon from Sidley as suggested by Greg on yesterday's CWG call.

Jonathan

-----Original Message-----

From: Gomes, Chuck [mailto:cgomes at verisign.com]

Sent: 19 July 2016 14:31

To: 'Andrew Sullivan' <ajs at anvilwalrusden.com><mailto:ajs at anvilwalrusden.com>; cwg-stewardship at icann.org<mailto:cwg-stewardship at icann.org>

Subject: Re: [CWG-Stewardship] Purpose of PTI

Andrew's suggestion works for me.

Chuck

-----Original Message-----

From: cwg-stewardship-bounces at icann.org<mailto:cwg-stewardship-bounces at icann.org> [mailto:cwg-stewardship-bounces at icann.org] On Behalf Of Andrew Sullivan

Sent: Tuesday, July 19, 2016 9:26 AM

To: cwg-stewardship at icann.org<mailto:cwg-stewardship at icann.org>

Subject: Re: [CWG-Stewardship] Purpose of PTI

I think you are rapidly walking in to angry terminological disputes that will delay the incorporation of PTI.

What about saying something like "relating to certain Internet registries and certain Internet Domain Name System zones, consistent with ICANN's Mission," or something like that?

A

On Tue, Jul 19, 2016 at 09:22:53AM -0400, Greg Shatan wrote:

I suggest considering something more specific than "relating to IANA

services" (especially since the second word in the paragraph is

"specific") in stating the purpose of PTI, since "IANA services" is

not a defined term nor is it self-explanatory.  Rather it is a "term

of art," and undefined terms of art are generally to be avoided

wherever possible in drafting legal documents.

We could use the current statement of purpose in the ICANN Articles as

a jumping off point, i.e.:

The specific purpose of the Corporation is to operate exclusively for

the benefit of, to perform the functions of and to carry out the

purposes of the Internet Corporation for Assigned Names and Numbers

(“*ICANN*”), namely (i) coordinating the assignment of Internet

technical parameters as needed to maintain universal connectivity on

the Internet; (ii) performing and overseeing functions related to the coordination of the Internet Protocol ("

*IP*") address space; (iii) performing and overseeing functions

related to the coordination of the Internet domain name system

("*DNS*"); and (iv) overseeing operation of the authoritative Internet DNS root server system.

I recognize that we'll probably want to change some of the verbs here

to more accurately reflect ICANN/IANA's role vs. that of the IETF and

RIRs, but I think this provides a good starting place for an

appropriately specific statement of purpose.

Greg

On Fri, Jul 15, 2016 at 11:35 AM, Sivasubramanian M

<isolatedn at gmail.com><mailto:isolatedn at gmail.com>

wrote:

Dear Chuck,

On Fri, Jul 15, 2016 at 8:06 PM, Gomes, Chuck <cgomes at verisign.com><mailto:cgomes at verisign.com> wrote:

Would it work to make the following change:?  “The specific purpose

of the Corporation is to operate exclusively for the benefit of, to

perform the functions of and to carry out the purposes of the

Internet Corporation for Assigned Names and Numbers (“*ICANN*”) related to the IANA services.”

Even without the change, 'related to IANA services' is implied,

but there is no harm in saying it explicitly. When PTI operates for

the benefit of ICANN, and ICANN is built up on the foundation of a

fair accountability framework it, it necessarily follows that PTI

would act in global public interest.

Sivasubramanian M

I agree with Matthew that it is not PTI’s purpose to perform all of

ICANN’s functions and purposes.

Chuck

*From:* cwg-stewardship-bounces at icann.org<mailto:cwg-stewardship-bounces at icann.org> [mailto:

cwg-stewardship-bounces at icann.org<mailto:cwg-stewardship-bounces at icann.org>] *On Behalf Of *matthew shears

*Sent:* Friday, July 15, 2016 5:28 AM

*To:* Yuko Green; cwg-stewardship at icann.org<mailto:cwg-stewardship at icann.org>

*Subject:* Re: [CWG-Stewardship] Purpose of PTI

Hi Yuko - thanks.

As I noted in the CWG chat yesterday I am uncomfortable with this

definition of the purpose of PTI:  "The specific purpose of the

Corporation is to operate exclusively for the benefit of, to

perform the functions of and to carry out the purposes of the

Internet Corporation for Assigned Names and Numbers (“*ICANN*”)."

This is very broad and very vague.   My understanding was that the

purpose of the PTI subsidiary was to perform the IANA functions

pursuant to an inter-company contract established between ICANN and

PTI.  This is very different from the proposed language.  Of course

we also need to see the inter company agreement to ensure that the

purpose of PTI is similarly parametered.

Matthew

On 14/07/2016 19:00, Yuko Green wrote:

Dear members of the CWG,

From today’s CWG call #82, we stated that we will provide the

transcript from the IOTF call where we discussed about the purpose

stated within the PTI Bylaws and Articles. Extracted below is the

transcript and chat history specifically around this topic. The

whole transcript is available at

https://www.icann.org/uploads/iana_work_session_asset/attachment/37<https://urldefense.proofpoint.com/v2/url?u=https-3A__www.icann.org_uploads_iana-5Fwork-5Fsession-5Fasset_attachment_37&d=CwMGaQ&c=Od00qP2XTg0tXf_H69-T2w&r=M3rwsTyNMTsSrNjjl2wpjY1sQALn2rPpcxAK31O8xYk&m=42IkyD0g5GTmm30PzUe7IXBbsoNKdAWR0F8UfeWjbvM&s=rLOMzWCHN-zfGxIvrDhwwl2HIs3z1pYXfnwu2Z3G4Wo&e=>

3/1467913551526IOTF_Call__14_transcript_06JUL16.pdf

and the AC room recording at https://icann.adobeconnect.com/p3qeid579y7/<https://urldefense.proofpoint.com/v2/url?u=https-3A__icann.adobeconnect.com_p3qeid579y7_&d=CwMGaQ&c=Od00qP2XTg0tXf_H69-T2w&r=M3rwsTyNMTsSrNjjl2wpjY1sQALn2rPpcxAK31O8xYk&m=42IkyD0g5GTmm30PzUe7IXBbsoNKdAWR0F8UfeWjbvM&s=1TIFjgWnTl8gEbuc_g2lhLTa2xE42vET9aFFsHbuF58&e=>.

****Transcript****

Paul Kane: In the articles of association, it says the sole

function – apparently I haven’t read it, again I apologize –

function of PTI is to serve ICANN. Historically the function of

IANA has been to serve the community, ICANN just happens to be the

contract to doing it. And I don’t know if that is correct, if that’s what’s in the articles of incorporation.

But if that is, it sort of has lost the raison d’etre of PTI. It is

not a service sector of ICANN because that makes it feel like a

department. It’s actually trying to serve a broader community such

as the naming community, the protocols and the numbers. But I

haven’t read it so I will try and read it so I might be wrong.

Trang Nguyen: Thanks, Paul. Let me – so Section 3 of the articles

says this – it does say that the specific purpose of PTI is to

operate exclusively for the benefit of and to perform the functions

of and carry out the purposes of ICANN. And I want to go back and

double check that again the language that is in the ICANN bylaws

that has been adopted because I think some of this is the

reflection of what’s included in the ICANN bylaws. So we want to do

that cross check and come back to this group and see how it aligns

with – what’s in the ICANN bylaws. But that is currently what is

reflected in the PTI articles of incorporation. There are some

comments in the chat from James. Things that affect the agreement

are done by contract with ICANN for protocol and numbers means that

there needs to be language to that effect in the PTI articles…

James Gannon: So, yes, Paul, I had a similar comment from somebody

else as well from the IETF area. And I think in I suppose

philosophical principle, yes, it is a slight change but I think in

the reality the fact that both the numbers and protocol communities

will still contract with ICANN it needs to be very clear in PTI’s

documents then that, yes, it is for the purposes of fulfilling the

IANA functions it needs to be able to serve the owners of those

contracts, which is ICANN still. So I think philosophically, yes,

it doesn’t really sound very right, but I think for the realities

of running PTI and for PTI to be accountable through the mechanisms

that we’ve built up that there does need to be language like that

inside the articles to make sure that it’s clear that the – those

two communities have the right of PTI serving their needs but also

then the accountability mechanism that we’ve put into ICANN are

also then bound to PTI by that language going backwards. And I think Trang is right that it’s also reflected in the ICANN bylaws going downwards towards PTI.

Trang Nguyen: Thank you, James. And I see Russ has similar comments

in the chat as well that the contract for the protocol parameters

function as well as with the numbers are with ICANN and not PTI.

****Chat****

Trang Nguyen:  The specific purpose of the Corporation is to

operate exclusively for the benefit of, to perform the functions

of, and to carry out the purposes of the Internet Corporation for

Assigned Names and Numbers, a California nonprofit public benefit corporation(“ICANN”).

James Gannon: I think this was Stephens comment yes? I think that

the fact that the agreements are done via contact to ICANN for

protocol and numbers means that there needs to be language to that

effect in the PTI articles

James Gannon: (Sorry no mic)

Paul Kane: A cross check is welcome but I hope you see my point it

is off target

Russ Housley: @Paul, the Numbers and Protocol Parameter communities

have their agreements with ICANN, not PTI.

Paul Kane: Good Point Russ

Russ Housley: @Paul, ICANN is choosing to put that work in PTI.

Russ Housley: @Paul, so PTI is an affiliate of ICANN to perform all

of that work

Paul Kane: ok -thanks

Regards,

*Yuko Green*

Strategic Programs Manager

Global Domains Division

Internet Corporation for Assigned Names and Numbers (ICANN)

Direct Line:  +1 310 578 8693<tel:%2B1%20310%20578%208693>

Mobile: +1 310 745 1517<tel:%2B1%20310%20745%201517>

E-mail:  yuko.green at icann.org<mailto:yuko.green at icann.org>

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Matthew Shears

Global Internet Policy and Human Rights

Center for Democracy & Technology (CDT)

+ 44 771 2472987<tel:%2B%2044%20771%202472987>

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Matthew Shears

Global Internet Policy and Human Rights

Center for Democracy & Technology (CDT)

+ 44 771 2472987<tel:%2B%2044%20771%202472987>

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Matthew Shears

Global Internet Policy and Human Rights

Center for Democracy & Technology (CDT)

+ 44 771 2472987

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Matthew Shears

Global Internet Policy and Human Rights

Center for Democracy & Technology (CDT)

+ 44 771 2472987
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