Re: [council] Re: Handling of DNSO Funds

["Milton Mueller" <mueller@syr.edu>]

I should point out that Karl is not trying to prevent
or obstruct our use of the funds, he is simply trying 
to call our attention to the real situation. 

I agree with his analysis. The Board has tremendous
flexibility to do almost anything it wants by 
modifying its by-laws with a simply majority. 

While I'm sure Louis' assurances
are sincere and that he will abide by them, I thank
Karl for bringing this long-term issue 
to our attention.

>>> Karl Auerbach <karl@CaveBear.com> 05/30/01 06:26 AM >>>

> Except for requests that would violate law or endanger ICANN's
> tax-exempt status, ICANN management intends to act under the above
> authorization.

We must not forget that this is regime that is established by the board -
and it may be revoked by the board.

To use an extreme example - The ICANN board could decide to amend the
by-laws and dissolve the DNSO entirely - we have the power to do this -
and use the "DNSO funds" for whatever corporate purpose we chose (modulo
any obligations that may have been attached to the funds and accepted by a
properly authorized ICANN officer.)

If ICANN were to lose a lawsuit and a judgement be levied upon ICANN, the
DNSO's funds would not be immune.

No matter what "management" might intend to do or not to do, the fact
remains, the money that the DNSO collects is ICANN money and any
obligations that are attached to that money are ICANN obligations.

Simply put - ICANN is not a bank for the DNSO.  The DNSO, because it is an
integral part of ICANN, has no funds that are beyond the reach of ICANN's
Board of Directors or ICANN's creditors.

As a member of the board, I would be perfectly happy to see the DNSO go
forth and become its own distinct legal enity that has its own
responsibility over its own funds.  It is my undersanding that such an
effort is underway.  My concern about these funds is that before such a
separation can be consumated there needs to be crystal clarity about their
status.

		--karl--