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auDA chair defends $9 million windfall as no-confidence vote looms

Kevin Murphy, July 18, 2018, 13:46:02 (UTC), Domain Policy

The chair of .au registry auDA has appealed to its membership for calm ahead of a vote of no confidence in himself, the CEO, and two of his fellow directors.

Chris Leptos yesterday defended the AUD 12 million ($9 million) windfall the organization has received as a result of its transition from long-term registry back-end Neustar to rival Afilias.

By opening the back-end contract to competition, and going with a bid far cheaper than the incumbent’s historical pricing, auDA saved itself a tonne of cash.

Some members reckon the money, which has been placed in a “marketing and innovation fund”, should have instead be returned to registrants via far lower prices for .au domains.

Leptos said the money was better used to promote .au rather than disappearing to the coffers of the back-end provider, writing;

What is most surprising to me is that a small number of members are criticising the new $12 million Marketing and Innovation Fund that will be used to grow the .au namespace. The fact is that auDA now has more funds, and those funds are being ploughed back into lower wholesale prices, and programs that will benefit participants in the .au namespace, rather than benefiting the private owners of the former registry operator. On any reasoned analysis, this is a good thing.

He assured disgruntled members that their concerns about this and other matters are being listened to, but noted the diversity of views among the membership.

Some members say auDA is not listening to their concerns. I can assure you that auDA is listening to its members and stakeholders at both management level and board level. The reality, however, is that auDA needs to balance the requirements of many members and stakeholders who disagree among themselves.

Leptos and two other directors are facing a vote to fire them from the board on July 27. CEO Cameron Boardman faces a no-confidence vote the same day,

The meeting was scheduled following a petition of members orchestrated at Grumpier.com.au, which managed to get signatures from over 5% of auDA’s then 320-odd members.

The Grumpies are currently trying to crowd-fund AUD 4,650 to pay for legal and other fees associated with this meeting. At time of writing, they’re about half-way there.

They’re also unhappy with auDA’s transparency, and with moves such as the currently delayed plan to sell direct second-level .au domains.

Leptos yesterday urged members to vote against the four resolutions, saying that the organization should not be “distracted” from implementing reforms recently mandated by the Australian government following a review.

auDA recently received 955 new membership applications — a four-fold increase in its member base — largely as a result of hundreds of sign-ups from staff at Afilias and the largest .au registrars. These people will not be approved in time to vote at the July 27 meeting.

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Comments (1)

  1. Snoopy says:

    The $12 million for registrars is pork barrelling.

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