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Nominet warns of government takeover as Namecheap backs fire-the-directors campaign

Kevin Murphy, March 15, 2021, Domain Policy

Nominet has raised the specter of a government takeover of the .uk registry, should members vote to oust five of its top directors at an Emergency General Meeting a week from now.

The warning came as part of the company’s anti-EGM publicity, and at a time when the campaign for a Yes vote has passed 25% of eligible votes, with Namecheap becoming the biggest name yet to support the ouster.

In a blog post, the company refers readers back to the Digital Economy Act of 2010, which in part gives the UK government the ability to unilaterally take over .uk, should Nominet seriously mess up:

It means that the government can step in, if Nominet is ever considered unstable or not capable of governing itself.

Removing five directors, including two of the four independents, and pressuring the remaining directors to install candidates outside normal procedures, as the EGM petitioners seek to do, would be a huge step backwards in terms of good governance. We have been warned that instability will be of serious concern to government. We know it would create a scenario which would make intervention more likely.

That part of the Act was brought in because at the time Nominet was perceived to be at risk of capture by domain investors. It has since reformed its constitution to make this less likely.

The current situation could be seen as a replay of the situation 11 years ago, with many of those most unhappy with Nominet’s recent strategy among the domainer community.

The campaign, PublicBenefit.uk, wants to fire five directors including the chair and CEO and replace them with two new appointments who have promised to lower .uk domain prices and direct more profit to public benefit causes.

As of today, the campaign has 429 member signatories, representing 25.1% of voting rights. This is probably enough to pass its resolutions, which call for a simple majority of members attending the EGM.

Namecheap has become the largest registrar so far to sign up. It’s the seventh-largest .uk registrar, with 201,355 domains under management. GoDaddy, 1&1 Ionos, Tucows, and the others in the top 10 are so-far undecided. Google has said it will abstain.

It’s debatable whether the Digital Economy Act applies here. The Act deems that a registry has failed under two quite narrow circumstances:

(a)the registry, or any of its registrars or end-users, engages in prescribed practices that are unfair or involve the misuse of internet domain names, or

(b)the arrangements made by the registry for dealing with complaints in connection with internet domain names do not comply with prescribed requirements.

Do either of those apply to PublicBenefit.uk’s demands? It looks like a stretch.

The EGM will take place March 22, next Monday, and right now it’s not looking great for Nominet’s top brass.

Nominet appoints Baroness to chair

Nominet, the .uk registry manager, has hired Irene Fritchie, aka Baroness Fritchie, to be its new chair.
No, I’d never heard of her either, but apparently Fritchie is a life peer and a dame, with a seat in the House of Lords since 2005.
Her geek credentials appear to comprise her chairmanship, until last year, of the Web Science Research Initiative, a joint initiative between the University of Southampton and MIT.
So she’s on speaking terms with Tim Berners-Lee, it seems.
Fritchie replaces Bob Gilbert, who quit in March after guiding the organization through a tricky period.
A cynic would say that it’s fortuitous that Nominet now has a member of the UK legislature fighting its corner, given that the recently passed Digital Economy Act originated and was primarily written in the Lords.
The Act created powers for the British government to take over .uk if Nominet screws up by letting domainers commandeer its board.
Fritchie is a cross-bencher, meaning she is beholden to no one political party.
Nominet also said that it has appointed Piers White MBE as a non-executive director. White has a background in banking and currently sits on the board of Ordnance Survey.