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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Martin,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Thank you for your communication of February 26 raising the issue of potential “vote switching” among constituencies. The SCI response to your question was developed after
full discussion on the SCI list. Although it took a while to sort out the procedural issues, we believe we have arrived at the appropriate answer.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Although the BC Charter team presents an interesting issue, the question is not properly before the SCI at this time since (1) we did not receive the question from the GNSO
Council or a group chartered by the GNSO Council and (2) we have not yet formulated or presented to Council a plan for periodic review of the Operating Procedures which might involve review of issues related to 6.1.2(j) and 6.2.6(d) of these Procedures, both
of which address the rule that "No legal or natural person should be a voting member of more than one Group."<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Angie Graves is the primary BC representative to the SCI and has volunteered to discuss this topic with you informally so that it can be explored further within the BC. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif""><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">Although the SCI is unable to take up consideration of the issue raised by the BC Charter Review Team at this time, we recognize the potential problem that this could cause.
Since the question arose during the BC subteam’s discussion of a revision of its Charter, it may be helpful for the BC - as part of its internal deliberations and process - to determine whether to seek external input and suggestions for mitigation of this
potential problem. For instance, BC leadership could reach out to other SG/C leaders to see if a common GNSO position can be developed around the issue. While we do not ourselves know if other SG/Cs are going to be reviewing their charters at this time, we
note that each SG/C charter is charged with specifying its own process for charter amendment.
<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif"">We hope the above is helpful to the BC’s Charter Review Team’s deliberations.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri","sans-serif"">Thank you,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri","sans-serif"">Anne<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.5pt;font-family:"Calibri","sans-serif"">GNSO SCI Chair, 2015<o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:9.0pt;font-family:"Calibri","sans-serif";color:black">Anne E. Aikman-Scalese, Of Counsel</span></b><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">
<a href="mailto:martinsutton@hsbc.com">martinsutton@hsbc.com</a> [<a href="mailto:martinsutton@hsbc.com">mailto:martinsutton@hsbc.com</a>]
<br>
<b>Sent:</b> Thursday, February 26, 2015 12:30 PM<br>
<b>To:</b> Aikman-Scalese, Anne<br>
<b>Subject:</b> Request to the SCI - Vote switching<o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Dear Anne,</span>
<br>
<br>
<span style="font-size:10.0pt;font-family:"Arial","sans-serif"">I am a member of the Business Constituency and currently working with the BC Charter Review team. During our recent discussions, we identified a potential issue that may affect GNSO Stakeholder
Groups (SGs) and Constituencies (Cs) which may warrant the attention of the SCI, which I understand you currently chair.</span>
<br>
<br>
<span style="font-size:10.0pt;font-family:"Arial","sans-serif"">With the introduction of New gTLDs, an increasing number of organisations now meet the criteria of membership within multiple groups, even across the contracting and non-contracting parties divide.
The point in question is in relation to the ability for a member of multiple SGs and Cs to regularly switch their voting rights between these groups in a tactical manner, so as to apply votes for elections/decisions where they may have concerns with lack
of representation within a specific group, at a specific time. Whilst they may only vote in one of the SGs or Cs, there is no restriction as to when and how frequently they may switch their voting power between these groups. This could be too flexible and
potentially allow the system to be exploited.</span> <br>
<br>
<span style="font-size:10.0pt;font-family:"Arial","sans-serif"">I am pleased to say that there is no evidence that this is occurring but as new members continue to increase, it seems sensible to consider preventative measures be put in place to protect the
GNSO for the future. As an example, a multi-member organisation could be obliged to commit holding it's voting rights within one group for a minimum term of 12 months before switching to another group. Of course, this would need to be uniform across all
of the SGs and Cs, hence, we think it is appropriate to raise this issue with the SCI for consideration.</span>
<br>
<br>
<span style="font-size:10.0pt;font-family:"Arial","sans-serif"">I would be happy to discuss further and interested to know if you feel this would be appropriate and worthwhile for the SCI to assess.</span>
<br>
<br>
<span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Kind regards,<br>
</span><br>
<span style="font-size:10.0pt;font-family:"Arial","sans-serif"">Martin</span> <br>
<b><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:red">Martin C SUTTON
</span></b><br>
<span style="font-size:7.5pt;font-family:"Arial","sans-serif"">Manager, Group Fraud Risk & Intelligence
<br>
Global Security & Fraud Risk<br>
Level 8,1 Canada Square,Canary Wharf,London,E14 5AB,United Kingdom</span> <o:p></o:p></p>
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