[CWG-Stewardship] DT-X Separation Mechanism - first draft - correct link

[Greg Shatan]

Olivier,

Here is my understanding:

Bankruptcy (by which I mean filing for bankruptcy in Bankruptcy Court)
itself would not affect the existence of the SO/ACs and CCWG, which
currently don't legally exist as separate entities anyway.  One of the
potential end results of a bankruptcy is a dissolution of an entity, with a
winding down of the business, sale of assets and payments to creditors (by
order of priority, and often at "pennies on the dollar").  That is the
worst case scenario of bankruptcy.  A dissolution could result in the end
of ICANN as we know it.

The better case in bankruptcy is a restructuring or reorganization of the
bankrupt entity, allowing it to resolve its debts, restructure or eliminate
obligations, and then emerge from bankruptcy as a "slimmed-down" healthier
entity.  It's up to board and management of a failing or "flailing" company
to declare bankruptcy when the company is still healthy enough to file for
a restructuring, rather than a dissolution.

If the SO/ACs became unincorporated associations, the bankruptcy of ICANN
would have no effect on the existence of the SO/ACs (which would then be
legal persons).

This is my understanding of the general rules as they relate to business
entities.  The rules of bankruptcy could be significantly different for
non-profits, but probably would not change the direct answer to your
question.


Greg Shatan

Caveat: I am not a bankruptcy lawyer and this is not legal advice.

On Fri, Apr 17, 2015 at 6:27 PM, Olivier MJ Crepin-Leblond <ocl at gih.com>
wrote:

>  Dear Avri,
>
> the document does not include the case of ICANN bankruptcy which I
> mentioned on the conference call.
> Should it be included? Furthermore, in the unlikely event of ICANN
> bankruptcy would ACs, SOs and a CCWG actually still legally "exist"?
> Kindest regards,
>
> Olivier
>
>
> On 17/04/2015 12:38, Avri Doria wrote:
>
> hi,
>
> the correct drive link.
>
>
> https://docs.google.com/document/d/1WvBqtgXJ7rNrbN-5Tjf5-gi80aZ2oRYDtF_JLrETRqg/edit?usp=sharing
>
> avri
>
> On 16-Apr-15 22:39, Avri Doria wrote:
>
> Hi,
>
> A first draft of a possible separation mechanism is available
>
> <https://docs.google.com/document/d/1pjRsvePXLHrK0zzFmMcavzvSXehds5FTCEUPPcc7K6w/edit?usp=sharing>
> <https://docs.google.com/document/d/1pjRsvePXLHrK0zzFmMcavzvSXehds5FTCEUPPcc7K6w/edit?usp=sharing>
>
> The drive document remains open for suggested edits and comments.
>
> For convenience, have attached a word and pdf version
>
>
> avri
>
>
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