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Help with Domain name purchase and rental

Discussion in 'Domain Name Disputes' started by Newbie01, Nov 18, 2015.

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  1. Newbie01

    Newbie01 Member

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    Hi,

    I am new to this to I apologise if this is in the wrong area.

    My partner has share in a Ltd company (10%), the other two directors have 45% each. One of the directors has purchased the domain name hometeam.co.uk for a fee of $5000 and has decided (without consultation) to rebrand the website with the new domain (was previously a uk.com).

    He has decided that the company will rent the the co.uk site from him for £300 per month.

    There is no domain rental agreement in place; he's just set up a standing order from the account.

    My partner thinks this is excessive and wanted some advice.

    She has not seen any documents to show how much the co.uk site was purchased for and cannot find it anywhere online.

    Can anyone offer any advice on where to find this and also if £300 a month is realistic or excessive.
     
  2. Domain Forum

    Acorn Domains Elite Member

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    articles.co.uk
     
  3. martin-s United Kingdom

    martin-s Well-Known Member

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    .co.uk is a step up from .uk.com

    The price paid for the name is a bit high

    £300/mo is excessively high, both in general and versus the purchase price.

    Why is the company not just reimbursing the purchase expense? £3,300 or thereabouts.
     
  4. martin-s United Kingdom

    martin-s Well-Known Member

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  5. Newbie01

    Newbie01 Member

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    He will not allow them to do this which for some reason. He seems to think if the company grows it will be more valuable and therefore he can charge more rent each month.
     
  6. Newbie01

    Newbie01 Member

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    Where can I obtain a fair appraisal of a monthly rent? Sorry if I appear dim, I have just no idea on this.
     
  7. OhNoNotHim

    OhNoNotHim Guest

    I don't know the complete ins and outs but part of being a Director of a Ltd company means you have responsibilities towards the company and that includes not hijacking a company opportunity for personal gain.

    Have a look at #3, #4 and #5 on http://www.lawdonut.co.uk/law/owner...rs/your-responsibilities-as-a-director-faqs#3
     
  8. Newbie01

    Newbie01 Member

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  9. orchardapple United Kingdom

    orchardapple Active Member

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    Who purchased the domain name? the LTD or the Director personally?
     
  10. max99x United Kingdom

    max99x Well-Known Member

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    Seems he's decided to buy it purely to make some additional money on the side, he should be happy with the company paying the price he paid (when he has proof of that price) if not then his intentions are not right for the company and I'd be wary!
     
  11. Adam H

    Adam H Well-Known Member Exclusive Member

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  12. Newbie01

    Newbie01 Member

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    One of the directors. There are 3 in total.
     
  13. Adam H

    Adam H Well-Known Member Exclusive Member

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    Ha , Started redirecting now, literally less than a minute after posting above.
     
    Last edited: Nov 18, 2015
  14. OhNoNotHim

    OhNoNotHim Guest

    I tried this morning before posting and it redirected fine then.
     
  15. Adam H

    Adam H Well-Known Member Exclusive Member

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    I could visit the old site just fine, had a good look around. Wasnt cached either as ive never visited that site before.................Window is still open in my browser so got a screenshot. Maybe propagating still if it was only recently changed in the last day or so .
     
  16. max99x United Kingdom

    max99x Well-Known Member

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  17. Adam H

    Adam H Well-Known Member Exclusive Member

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    Unless they offer the same services, same logo and same contact details it wasnt :D
     
  18. invincible

    invincible Well-Known Member

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    Check the WHOIS; hometeam.uk.com isn't registered (it's a Centralnic name that I've checked directly with their own WHOIS) but hometeamuk.com is referenced directly on the web site.

    It's for the company directors and possibly with the help of their accountant to decide value of new domain name to business, like with any asset. Does domain name bring significant additional value above cost, for example? It's also for the directors to decide whether the option to lease domain name is acceptable or if company wishes to consider taking some action (e.g. Nominet DRS) against registrant (also a director) for infringing its Rights. None of these are really issues for anyone other than the company directors, held to accountant by the shareholders (possibly the same people but not necessarily), to decide together. Beyond having a value to the company, unless the domain name could potentially be of value to others who also trade under the term, the domain name is worth whatever an interested party might decide to pay for it. At face value, and presented with no information about who else may ever wish to acquire the domain name, I am unaware of who potential others might be. Hence the domain name could be worth little to nothing in that scenario.
     
  19. gimpydog United Kingdom

    gimpydog Active Member

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  20. Newbie01

    Newbie01 Member

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    Thanks to everyone for your responses.
     
  21. accelerator United Kingdom

    accelerator Well-Known Member

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    Most often, a domain name sale is a private transaction. The sale price only becomes publicly available if one of the parties decides to report it.

    Whilst I don't like to comment on how people run their business affairs I will give my opinion on how domain names should be handled. Domain names should be regarded as a business asset. That means it should be registered in the name of the business, and on the books of the business. The problem is that often domain names can get registered by individuals or web designers on behalf of the business. This means that legally the business does not have ownership of the domain, someone else does. That is a risk to the business and any shareholders in the business.

    Rgds
     
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