New Media - Same Old Disputes
Nominet UK, the organisation that owns and manages the .uk registry has been the subject of a rather unseemly boardroom battle.
It has all the hallmarks of a classic boardroom dispute, motivated by a power struggle and fuelled by a clash of personalities.
In the blue corner CEO Lesley Cowey and Chairman Bob Gilbert. In the red corner non-executive director Jim Davies.
After a fairly bruising 15 rounds a technical knockout with Mr Davies resigning on 20 January 2009. His resignation letter which has been published online contains various allegations about the corporate governance of Nominet prompting a fairly detailed rebuttal by Nominet.
The suggestion from other bloggers is that that the dispute represents a fight between the old guard who see Nominet as a not for profit public service and the new guard of “domainers” (those who seek to profit from commerce in domain names). For a very helpful review of the background see Kieran McCarthy’s blog.
The tension between old and new is often at the heart of boardroom disputes and shareholder disputes. Family companies that have always been run a certain way are prime candidates for disputes when a new generation takes over with new and disconcerting ideas.
Here an organisation set up in the days when the idealism rather than rampant capitalism drove the internet is having to adapt to a harsher environment. The money that can be made from domain names means that there are powerful vested interests who would love to gain control of the various registrys across the world.
Victory in the first big match to the old guard but it is no surprise that a review of corporate governance at Nominet has been instituted. Clearly lessons will need to be learned.
What is interesting is that this review was apparently prompted by BERR (the UK Department for Business, Enterprise and Regulatory Reform). The government is, of course, another body with a vested interest in the whole business of domain names and ultimately is unlikely to let Nominet fall into the hands of commercial interests.
Tags: Boardroom Disputes
Boardroom Disputes, Shareholders disputes | Ed Weeks | 
January 29, 2009 8:52 pm
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