Cross Community Working Group on Enhancing ICANN Accountability: Difference between revisions

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====Public Comment====
====Public Comment====
Many public comments were received regarding the second draft proposal.<ref>[https://www.icann.org/public-comments/ccwg-accountability-2015-08-03-en ICANN.org Public Comment Archive - CCWG-Accountability Second Draft Proposal]</ref><ref name="ws1d2pc">[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/index.html ICANN.org Listserv Archive - Public Comments on CCWG-Accountability's Second Draft Proposal]</ref> The ICANN Board submitted two comments: an initial comment providing initial reactions and describing the board's intended process of review;<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/msg00006.html ICANN.org Listserv Archive - Submission on Behalf of the ICANN Board], August 21, 2015</ref> and then "final and supplemental comments"<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/msg00045.html ICANN.org Listserv Archive - ICANN Board Submission of Final and Supplementary Comments], September 11, 2015</ref> that included a summary chart of board responses to the CCWG-Accountability proposals,<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfjEvds8QWke.pdf CCWG-Accountability Draft 2 - Board Comments Matrix and Notes on Proposed Elements], September 11, 2015</ref> an memo describing an alternative empowered community mechanism called the "Multistakeholder Enforcement Mechanism,"<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfrqjmsiI7VM.pdf CCWG-Accountability Draft 2 - Board Memo on Proposed Approach for Community Enforceability], September 11, 2015</ref> a FAQ regarding the MEM,<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfWioCio9t5O.pdf CCWG-Accountability Draft 2 - FAQ Regarding the Board's Proposed Approach for Community Enforceability], September 11, 2015</ref> and a written summary of the board's input.<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfvJv50Ep7dU.pdf CCWG-Accountability Draft 2 - Summary of Board Input], September 11, 2015</ref>  Most of the board's comments agreed with the CCWG-Accountability proposals or agreed in principle with proposed modifications. However, the board did not agree with the proposed Community Mechanism in the second draft proposal. The board also submitted a memo from law firm Jones Day<ref name="jonesday">[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdf6XLSDNuLUM.pdf CCWG-Accountability Draft 2 - Jones Day Impact Analysis], August 27, 2015</ref> that provided an impact analysis on the proposals contained in the second draft report.<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/msg00007.html ICANN.org Listserv Archive - ICANN Board Submission of Jones Day Impact Analysis Regarding CCWG-Accountability Second Draft Proposal], August 27, 2015</ref> The Jones Day analysis raised several issues that had the potential to destabilize the governance of ICANN, including the apparent lack of interest in participating in the Community Mechanism decision process.<ref name="jonesday" /> In its impact analysis, Jones Day suggested that the regulatory and legal consequences of the model had not been fully explored:
Many public comments were received regarding the second draft proposal.<ref>[https://www.icann.org/public-comments/ccwg-accountability-2015-08-03-en ICANN.org Public Comment Archive - CCWG-Accountability Second Draft Proposal]</ref><ref name="ws1d2pc">[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/index.html ICANN.org Listserv Archive - Public Comments on CCWG-Accountability's Second Draft Proposal]</ref> The ICANN Board submitted two comments: an initial comment providing initial reactions and describing the board's intended process of review;<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/msg00006.html ICANN.org Listserv Archive - Submission on Behalf of the ICANN Board], August 21, 2015</ref> and then "final and supplemental comments"<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/msg00045.html ICANN.org Listserv Archive - ICANN Board Submission of Final and Supplementary Comments], September 11, 2015</ref> that included a summary chart of board responses to the CCWG-Accountability proposals,<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfjEvds8QWke.pdf CCWG-Accountability Draft 2 - Board Comments Matrix and Notes on Proposed Elements], September 11, 2015</ref> an memo describing an alternative empowered community mechanism called the "Multistakeholder Enforcement Mechanism,"<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfrqjmsiI7VM.pdf CCWG-Accountability Draft 2 - Board Memo on Proposed Approach for Community Enforceability], September 11, 2015</ref> a FAQ regarding the MEM,<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfWioCio9t5O.pdf CCWG-Accountability Draft 2 - FAQ Regarding the Board's Proposed Approach for Community Enforceability], September 11, 2015</ref> and a written summary of the board's input.<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdfvJv50Ep7dU.pdf CCWG-Accountability Draft 2 - Summary of Board Input], September 11, 2015</ref>  Most of the board's comments agreed with the CCWG-Accountability proposals or agreed in principle with proposed modifications. However, the board did not agree with the proposed Community Mechanism in the second draft proposal. The board also submitted a memo from law firm Jones Day<ref name="jonesday">[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/pdf6XLSDNuLUM.pdf CCWG-Accountability Draft 2 - Jones Day Impact Analysis], August 27, 2015</ref> that provided an impact analysis on the proposals contained in the second draft report.<ref>[https://forum.icann.org/lists/comments-ccwg-accountability-03aug15/msg00007.html ICANN.org Listserv Archive - ICANN Board Submission of Jones Day Impact Analysis Regarding CCWG-Accountability Second Draft Proposal], August 27, 2015</ref> The Jones Day analysis raised several issues that had the potential to destabilize the governance of ICANN, including the apparent lack of interest in participating in the Community Mechanism decision process.<ref name="jonesday" /> In its impact analysis, Jones Day suggested that the regulatory and legal consequences of the model had not been fully explored:
<blockquote>It does not appear that the CCWG has conducted a comprehensive regulatory impact analysis, as suggested by the Board, which would be helpful in identifying and mitigating potential unintended consequences and risks of capture.<br />
<blockquote>It does not appear that the CCWG has conducted a comprehensive regulatory impact analysis, as suggested by the Board, which would be helpful in identifying and mitigating potential unintended consequences and risks of capture. The move to a membership model is a significant governance shift that should be approached carefully and pursued only when the details of the model are fully defined, completed and tested.<br />
The move to a membership model is a significant governance shift that should be approached carefully and pursued only when the details of the model are fully defined, completed and tested.<br />
California law provides the Sole Member with significant statutory rights. These rights include, among other things, (1) the right to amend the Bylaws without Board approval, (2) the ability to initiate litigation against ICANN and the Board, and (3) the ability to remove directors without cause. In many cases, it is unclear whether ICANN could enforce provisions of the Bylaws that attempt to waive or modify many of the Sole Member’s statutory rights. A review of the revised Bylaws implementing the Proposal will be needed to fully assess this item.<ref name="jonesday" /></blockquote>
California law provides the Sole Member with significant statutory rights. These rights include, among other things, (1) the right to amend the Bylaws without Board approval, (2) the ability to initiate litigation against ICANN and the Board, and (3) the ability to remove directors without cause. In many cases, it is unclear whether ICANN could enforce provisions of the Bylaws that attempt to waive or modify many of the Sole Member’s statutory rights. A review of the revised Bylaws implementing the Proposal will be needed to fully assess this item.<ref name="jonesday" /></blockquote>


==References==
==References==
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