Companies Act
Edwin is entirely correct - Nominet is a company limited by guarantee. See the Companies Act:
http://www.opsi.gov.uk/ACTS/acts2006/plain/ukpga_20060046_en_6#pt5-ch2-pb1-l1g62
(2)The first condition is that the objects of the company are the promotion of commerce, art, science, education, religion, charity or any profession, and anything incidental or conducive to any of those objects.
(3)The second condition is that the company’s articles—
(a)require its income to be applied in promoting its objects,
(b)prohibit the payment of dividends to its members, and
(c)require all the assets that would otherwise be available to its members generally to be transferred on its winding up either—
(i)to another body with objects similar to its own, or
(ii)to another body the objects of which are the promotion of charity and anything incidental or conducive thereto,(whether or not the body is a member of the company).
However, look at Nominet's financial goals:
http://www.nominet.org.uk/governance/financialprinciples/
- Achieve long term income and expenditure neutrality
- Achieve long term cash flow neutrality
- Hold a reserve for two years of operating costs
- Hold a legal fund
Where does a charity fit into there? If they really need 2x£11m=£22m operating costs plus however-many million in a legal fund, their fund is currently £10m+ short - so why are they giving away £5m to some arbitrary charity!?!
Edwin is entirely correct - Nominet is a company limited by guarantee. See the Companies Act:
http://www.opsi.gov.uk/ACTS/acts2006/plain/ukpga_20060046_en_6#pt5-ch2-pb1-l1g62
(2)The first condition is that the objects of the company are the promotion of commerce, art, science, education, religion, charity or any profession, and anything incidental or conducive to any of those objects.
(3)The second condition is that the company’s articles—
(a)require its income to be applied in promoting its objects,
(b)prohibit the payment of dividends to its members, and
(c)require all the assets that would otherwise be available to its members generally to be transferred on its winding up either—
(i)to another body with objects similar to its own, or
(ii)to another body the objects of which are the promotion of charity and anything incidental or conducive thereto,(whether or not the body is a member of the company).
However, look at Nominet's financial goals:
http://www.nominet.org.uk/governance/financialprinciples/
- Achieve long term income and expenditure neutrality
- Achieve long term cash flow neutrality
- Hold a reserve for two years of operating costs
- Hold a legal fund
Where does a charity fit into there? If they really need 2x£11m=£22m operating costs plus however-many million in a legal fund, their fund is currently £10m+ short - so why are they giving away £5m to some arbitrary charity!?!
