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<div>On Wednesday's WP1 call, I was assigned to revise our proposed text on whether Existing ICANN Bylaws Article 18 should be a Fundamental Bylaw. Article 18 is the existing ICANN bylaws requirement regarding location of headquarters.</div>
<div><br>
</div>
<div>Attached and below is my re-draft of this section, for inclusion in this weekend’s FREEZE document. Note that the text highlighted in yellow includes an important statement for our lawyers to confirm. If changes to ICANN Articles of Incorporation require
affirmative approval of the Sole Member, then it would require affirmative community approval for ICANN to change its present status as a <span style="text-indent: -24px;">California Nonprofit Public Benefit Corporation.</span></div>
<div><br>
</div>
<div>Re-draft of Section 3B.5:</div>
<div><br>
</div>
<div>
<p class="MsoNormalCxSpFirst" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:0in;mso-add-space:auto;text-indent:0in">
<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:Cambria;mso-fareast-theme-font:
minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:
bold">---begin insert ---<o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:0in;mso-add-space:auto;text-indent:0in">
<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:Cambria;mso-fareast-theme-font:
minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:
bold">The first CCWG draft proposal included an explanation and question about
whether existing ICANN bylaws requirement regarding location of headquarters should be a Fundamental Bylaw.<o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:0in;mso-add-space:auto;text-indent:0in;
tab-stops:0in">
<span style="text-indent: 0in;"><br>
</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:0in;mso-add-space:auto;text-indent:0in;
tab-stops:0in">
<span style="text-indent: 0in;">To summarize the explanation, we described Affirmation of Commitments paragraph 8(b), where “ICANN affirms its commitments to: (b) remain a not for profit corporation, headquartered in the United States of America with offices
around the world to meet the needs of a global community …”</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="text-indent: 0in;"><br>
</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="text-indent: 0in;">The </span><u style="text-indent: 0in;">nonprofit</u><span style="text-indent: 0in;"> commitment in 8b is already reflected in ICANN’s ARTICLES OF INCORPORATION:</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:-.25in;mso-list:l0 level2 lfo1;tab-stops:0in">
<!--[if !supportLists]--><span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:Helvetica;mso-bidi-font-family:
Helvetica;mso-font-kerning:10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:
bold"><span style="mso-list:Ignore">a.<span style="font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold">“3. This Corporation is a nonprofit public
benefit corporation and is not organized for the private gain of any person. It is organized under the California Nonprofit Public Benefit Corporation Law for charitable and public purposes. "<o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold"><o:p> </o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;background:
yellow;mso-highlight:yellow;mso-font-kerning:10.0pt;mso-fareast-language:JA;
mso-bidi-font-weight:bold">A change to the Articles of Incorporation
would require 2/3 vote of the Board and 2/3 vote of the Community Mechanism as Sole Member.<span style="mso-spacerun:yes">
</span>[LEGAL TO CONFIRM]</span><span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:Cambria;mso-fareast-theme-font:
minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:
bold"><o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold"><o:p> </o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold">The ‘<u>headquartered</u>” commitment in 8b is already in current ICANN
Bylaws, at Article XVIII Section 1:<o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:-.25in;mso-list:l0 level2 lfo1;tab-stops:0in">
<!--[if !supportLists]--><span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:Helvetica;mso-bidi-font-family:
Helvetica;mso-font-kerning:10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:
bold"><span style="mso-list:Ignore">b.<span style="font-style: normal; font-variant: normal; font-weight: normal; font-size: 7pt; line-height: normal; font-family: 'Times New Roman';">
</span></span></span><!--[endif]--><span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold">“OFFICES. The principal office for
the transaction of the business of ICANN shall be in the County of Los Angeles, State of California, United States of America. ICANN may also have an additional office or offices within or outside the United States of America as it may from time to time establish.”<o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold"><o:p> </o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold">While the Board could propose a change to this Bylaws provision, the Community
Mechanism as Sole Member could block the proposed change with a 75% voting threshold.<o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold"><o:p> </o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold">In its 3-May-2015 draft, the CCWG-Accountability asked commenters whether
Bylaws Article XVIII Section 1 should keep its current status as a regular Bylaw, or be designated as a “Fundamental Bylaw”. In the latter case, any Bylaws change would require approval by 75% vote of the Community Mechanism as Sole Member.</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;mso-add-space:auto;
text-indent:0in;tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;
mso-fareast-font-family:Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:
10.0pt;mso-fareast-language:JA;mso-bidi-font-weight:bold"><br>
</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:0in;mso-add-space:auto;text-indent:0in;
tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:
Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:
JA;mso-bidi-font-weight:bold">Three considerations suggest that CCWG not propose Article XVIII be designated
as a Fundamental Bylaw:<br style="mso-special-character:
line-break">
<!--[if !supportLineBreakNewLine]--><br style="mso-special-character:line-break">
<!--[endif]--><o:p></o:p></span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:.5in;mso-add-space:auto;text-indent:0in;
tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:
Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:
JA;mso-bidi-font-weight:bold">First, public comment on the first draft was evenly split on the question
of whether to designate Article XVIII a Fundamental Bylaw. Governments were among those expressing strong opposition.</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:.5in;mso-add-space:auto;text-indent:0in;
tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:
Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:
JA;mso-bidi-font-weight:bold"><br>
</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:.5in;mso-add-space:auto;text-indent:0in;
tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:
Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:
JA;mso-bidi-font-weight:bold">Second, the Community Mechanism as Sole Member must approve with 2/3 vote
any change to ICANN’s Articles of Incorporation, which now state that ICANN is a California Nonprofit Public Benefit Corporation.</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:.5in;mso-add-space:auto;text-indent:0in;
tab-stops:0in">
<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:
Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:
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</span></p>
<p class="MsoNormalCxSpMiddle" style="margin-top:2.0pt;margin-right:0in;
margin-bottom:8.0pt;margin-left:.5in;mso-add-space:auto;text-indent:0in;
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<span style="mso-bidi-font-size:11.0pt;mso-fareast-font-family:
Cambria;mso-fareast-theme-font:minor-latin;mso-font-kerning:10.0pt;mso-fareast-language:
JA;mso-bidi-font-weight:bold">Third, the Community Mechanism as Sole Member could block any proposed change
to ICANN Bylaws Article XVIII, which states “The principal office for the transaction of the business of ICANN shall be in the County of Los Angeles, State of California”<o:p></o:p></span></p>
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