The new Domainz board has clipped the wings of Domainz CEO Patrick O'Brien, but has decided to continue financial support of his defamation action against Alan Brown.
All but one member of the board of Domainz, which made the original decision to back O'Brien's action, was replaced early last month at a meeting of the council of Domainz' owner, Isocnz. The council received a report last week from one of the new board members, Roger De Salis.
IDGNet understands De Salis said the new Domainz board had reluctantly agreed to continue funding the case on the basis that it might have trouble recruiting another CEO in future if it did not show support for the incumbent. The monthly cost of supporting the case was said to be $3000.
The decision to back the case despite the motion passed at the recent Isocnz AGM, which triggered the changes on the Isocnz council and the Domainz board, "That this AGM deplores the fact that Domainz are financially supporting the defamation action taken by the CEO of Domainz against Alan Brown and directs the incoming Council to make all efforts to have this support withdrawn."
O'Brien has, however, been instructed to stop employing his partner as a member of the Domainz staff and to refrain from entering into contracts beyond $1500 without board approval; to employ a technically competent staff member and to redraw the controversial Domainz registrar contract, which most of the ISPs conducting domain name registration services refused to sign.
The council was told the new Domainz Registry System, which is functioning satisfactorily after a host of problems in its first month of operation, has so far cost more than $778,000, compared to the approved expenditure of $450,000. One major ISP was said to have spent around $300,000 on work allowing it to interface with the new system.
The new Domainz board also wants to recruit an independent body to measure customer satistaction. The performance of the CEO is also to be measured.
No one from the Isocnz council was available for comment yesterday.