auDA Member Newsletter April

[DomainNames]

Registry Update
In December 2016, the Board of auDA resolved to enter into a period of exclusive negotiations for the management of auDA’s registry operations beyond 2018 with AusRegistry, reserving the right to conduct a market exercise if the Board felt it appropriate.

On Monday April 24 2017, the auDA Board resolved to formally bring these exclusive negotiations to an end and auDA has advised AusRegistry of this resolution.

Further, the Board agreed that a restricted tender exercise —by invitation — will be undertaken. This process will commence initially with a scoping exercise, sourcing expert advice so auDA can build and operate a dedicated .au registry.

The auDA Board believe, as a key piece of national infrastructure, a market exercise is the most appropriate next step in ensuring a rigorous process is undertaken to test the value, accountability and performance of building a best-in-class registry.

AusRegistry will be invited to participate in the restricted tender process, as will other operators, once the scoping exercise and tender documentation is complete.

Most members will have read this news in our public statement and are understandably wondering, what’s next in this process? Most pertinently, how it will be run, and what expertise auDA will source? With that, I can assure members we will make further announcements as soon as we can to the auDA members list, our announcements list subscribers and all stakeholders we represent, before the next member newsletter. It’s an exciting time for the future of the .au domain name space, but we do need to make sure communications around tenders and processes associated with them are handled professionally and carefully. We respectfully appreciate your patience at this time.

auDA Board Board Meeting — 24 April 2017
The Board meeting of the 24 April was predominantly focused on the Registry discussions and presentation of research and benchmarking undertaken to inform Board members’ consideration. The Board unanimously voted in their resolution and all Board members with any registered conflict of interest were excluded from discussions on this subject and did not vote on the resolution.

In addition to the resolution of the exclusive negotiations regarding the registry, the Board agreed to convene a meeting on May 22 to discuss issues not able to be addressed, including organisation strategy for the new financial year, brand strategy review, stakeholder engagement plans and direct registration policy and wider policy reform.

Details regarding outcome from that meeting will be made available after that date.
New Independent Board Director
As you will have noted in the email sent out on 27 April, we are pleased to welcome Sandra Hook to the auDA Board as a new Independent Director. Ms Hook was selected after a thorough, independent executive search, as part of the process to appoint a new independent director.

Ms. Hook brings with her extensive operational, financial management and strategic experience built over 25 years in senior roles at some of Australia’s largest companies including Foxtel, Federal Publishing Company, Murdoch Magazines, Fairfax, ACP and News Limited. She replaces The Hon. Toney Staley AO, who retired from the auDA Board in February.

Governance Reform Update
In response to member feedback regarding the decision by the Board at the February Board meeting to cease publishing Board agendas and minutes, we would like to clarify and reiterate why that decision was taken.

Members may recall that in December 2012 the auDA Board approved the Accountability and Transparency Framework developed by Westlake. The framework includes, amongst other things, the publishing of Board Meeting Agendas and Minutes as well as the annual budget.

In November 2016, auDA undertook an extensive membership consultation and survey. Through this consultation and general correspondence from members it was determined that the accountability and transparency framework put in place after the Westlake Framework simply didn’t translate and has not achieved the objective of accountability and transparency to members.

As the custodian and regulator of an important national asset, it is important that auDA is accountable and transparent to members and the public. Subsequently auDA, as part of its ongoing commitment to governance reform and communication reviews, sought expert input on disclosure and transparency frameworks. This included guidance and benchmarking against accepted best practice by organisations including the Australian Stock Exchange (ASX), the Australian Charities and Not for Profits Commission (ACNC) and the Australian Institute of Company Directors (AICD). Publishing of Board agendas and minutes are not collectively accepted as best practice, or effective engagement or communication methods with members and stakeholders amongst these peak bodies. The specific guidelines and recommendations within the applicable frameworks are represented as follows:

 

[DomainNames]

ASX Corporate Governance Principles and Recommendations
Principle 6: Respect the rights of security holders
A listed entity should respect the rights of its security holders by providing them with appropriate information and facilities to allow them to exercise those rights effectively.

A fundamental underpinning of the corporate governance framework for listed entities is that security holders should be able to hold the Board and, through the Board, management to account for the entity’s performance. For this to occur, a listed entity needs to engage with its security holders and provide them with appropriate information and facilities to allow them to exercise their rights as security holders effectively. This includes:
• giving them ready access to information about the entity and its governance;
• communicating openly and honestly with them; and
• encouraging and facilitating their participation in meetings of security holders.

Recommendation 6.1: A listed entity should provide information about itself and its governance to investors via its website.

The ASX principles and guidelines do not in any way state that effectiveness in engagement with security holders is achieved through publishing Board agendas and minutes.

AICD Good Governance Principles and Guidance for Not for Profit Organisations

Principle 7: Integrity and Accountability

It is important that the Board have in place a system whereby: there is a flow of information to the Board that aids decision-making; there is transparency and accountability to external stakeholders; and the integrity of financial statements and other key information is safeguarded.

There is no suggestion this is achieved through publishing Board minutes and agendas.

ACNC: Governance Standard 2: Accountability to Members
This standard requires charities (including companies limited by guarantee) to:
Take reasonable steps to be accountable to their members, and allow their members adequate opportunities to raise concerns about how the charity is run. Being accountable includes letting the members know about the charity’s activities and what the results of those activities are. It also includes allowing members to raise concerns and ask questions about how a charity is run.

Again, publishing Board minutes and agendas do not fulfil this objective.

The decision taken earlier this year was that the most effective way of communicating with members, and what is considered best practice, is by way of monthly member newsletters. This was a commitment which was made commencing January this year, and to date has been positively received by members. The purpose of the newsletter is to communicate important issues, developments, Board decisions and other notifications in a detailed and easily-read format, and more regularly. Previously, auDA sent quarter member newsletters on community and international initiatives, now we send through monthly insights on the work progressing, Board meeting updates – in considerable detail (within the governance principles and guidelines outlined above) and invite members to actively be involved in policy develop and much more.

Any suggestion that the decision to discontinue the practice of publishing agendas and minutes is intended to limit information to members goes against the spirit of the decision. The auDA Board must consider and decide upon a number of commercial and otherwise sensitive issues, and consistent with corporations’ legislation, these issues are matters for the Board.

The Board has committed to further governance improvement of which details will be announced in future newsletters.
Policy

 

[DomainNames]

Direct Registration
As announced back in February (and outlined on the dedicated Direct Registration page on our website here), we have commenced stakeholder research. This research will form part of the process in guiding the policy development for direct registration. We will also reference other ccTLD operator experiences where relevant and our own global economic assessment.

First stage qualitative research is now complete and a summary of the outcomes will be published in the May newsletter, after the Board meeting.

Second stage qualitative research recruitment is complete - which includes some members who missed the first stage and a number of key stakeholders, such as other regulatory authorities, education authorities and government stakeholders. They will be complete by mid-May and a report on outcomes published for members, after the May Board meeting.

Alongside this, we commissioned the same research experts involved in the qualitative interviews — after a three-way pitch — to draft a quantitative survey. Their task was to draft a survey to gather feedback, to best inform the policy drafting process (in part). In writing the survey we requested they encapsulate the feedback we have from both the first stage qualitative research, the Names Panel Policy Panel final report, The Minority Report – developed after the Names Panel Policy and expert advice from our policy team. We believe the result is a clear, easy to follow, sound result from a qualified independent research expert.

To answer some of the member queries we have had since the research went live; measures were put in place to prevent the same individual completing the survey multiple times. The organisation undertaking the survey response collation, utilises industry-standard measures to detect multiple completions by the same individual. These measures are employed after the survey has closed to flag potential additional responses and remove them from the response data, rather than preventing respondents from taking the survey again. Of course there are always going to be ways around this — no system is foolproof — but we believe this strikes a good balance between convenience (being able to complete the survey without inconvenient CAPTCHAs or account creation) and data integrity. Please note as well that our survey partner has no access to the personal details used to distribute the links to domain name owners.

The survey was sent by auDA using our internal systems and our communications, marketing and engagement team respond to any feedback, one by one, to ensure the security and integrity of details. So rest assured we taken the role of regulating this space seriously, as we do the security of the registrant details. The majority of respondents have received the survey overwhelmingly positively.

This survey is being sent to more than 200,000 domain name registrants/owners and additionally, a general public stakeholder link was also made available on our website. This link has also been distributed to a variety of member-based stakeholder groups and regulators, as well as promoted on social media and to our subscriber lists to ensure the highest level of engagement possible.

For the Domain Name Owners – the survey is being sent in batches to lists representative of the makeup of the more than 3 million .au domain names owners so we get a relative response rate per .au domain group. We truly want as large and as representative response as possible that is not biased one way or another. This is defined as best practice by research experts, as sending to the entire .au domain name owners list would be not only unnecessary, but inefficient and logistically very difficult.

For the general public wishing to take part via our website, we are budgeting on receiving about 2,000 responses for the general public group. This number is based on the response rate of previous surveys and what our research experts consider to constitute a “representative” response rate. However, this maximum number is flexible and we are quite open to increasing that number if demand requires. This general public cohort is an important part of this research because members, while important to us, represent only one section of our stakeholder groups. Our procedures – as our Constitution outlines – need to be “… inclusive of all parties having an interest in use of the domain name system in Australia”

Lastly, we want to make clear that this survey is by no means the final word on direct registration. This survey is just one part of a long consultative process that will help inform the final policy. We have been informing members and other stakeholder groups of the consultation opportunities since January and we will continue that discussion to ensure the final policy takes into account a broad range of views and opinions.

 

[DomainNames]

Security

Prime Minister Malcolm Turnbull has released the first annual update (PDF) to the government’s Cyber Security Strategy. The update includes the acceleration of the roll out of Joint Cyber Security Centres across capital cities, the first of which was opened in Brisbane earlier this year and the continuation of programmes such as the establishment of the Australian Cyber Security Growth Network and ASX 100 Cyber Health Check. This update continues the collaborative spirit between government, business and individuals to address the growing threat of cybercrime.

auDA will engage with key stakeholders in the specific areas covered within the update and hope to be able to announce how we plan to participate or be involved, as an important representative of the cyber security ecosystem.

Root Zone KSK Rollover Details
The root zone is changing the Key Signing Key (KSK) cryptographic key used to sign the answers to DNS queries the root servers receive. These keys are a public-private pair which play an important role in the Domain Name System Security Extensions (DNSSEC). In order for DNSSEC to continue working, operators that run validating resolvers need to update the root public key on their resolver. Failing to do so will cause DNSSEC to break not just at the root but for any signed zone.

DNSSEC works on a chain of trust. This starts at the root, which means the root must be verifiable. If the root key can not be verified DNSSEC is broken from the very top.

Who runs a validating resolver?

It is not a requirement that all resolver operators run a validating resolver, many do not at this stage of the DNSSEC deployment, however if they do, they need to ensure compliance with these changes.

What do they need to do?
Operators running a validating resolver must update their name server software, or ensure tier name server software complies with RFC 5011.

The root public key (and the root name server IP addresses) is “bootstrapped” into the name server software – which means it is hard coded when deployed. It allows the software to work “out of the box”. The downside is that when changes like the KSK need to occur may require some sort of manual intervention such as updating software, copying and pasting the new key, turning on optional features to allow auto updating etc.

How is auDA impacted?
As auDA is an authoritative name server operator, we do not run public resolvers, and as such do not need to update our name server software. However, .au can be impacted because we are a signed zone, meaning DNSSEC will break and .au names will become unresolvable if a validating resolver used to query a .au name is broken.


International Stakeholders



On 20 March 2017, the APTLD (Asia Pacific Top Level Domain Association) appointed auDA’s Deputy Chair, Erhan Karabardak to the APTLD Board, on a temporary basis. Erhan’s term commences on 1 May 2017 and lasts until the APTLD Annual General Members Meeting in February 2018.

The APTLD is an organisation for ccTLD registries in the Asia Pacific region. APTLD works as the forum of information exchange regarding technological and operational issues of domain name registries in Asia Pacific region. auDA has recently initiated a capacity building project, partnering with APTLD members to assist in the development of policy, regulatory and registry services for ccTLD administrators in the region.


Events auDA staff recently attended the AIIA Victoria Ministerial Forum, where The Hon. Philip Dalidakis MP, Victorian Minister for Small Business, Innovation and Trade spoke about the challenges facing government IT procurement. While conceding ICT procurement projects have, in the past, been subject to cost overruns, Minister Dalidakis is working towards a brighter future following the release of the Victorian Government’s ICT strategy in March 2016. Other speakers included Linda Dewar, of the Department of Premier and Cabinet (Victoria), who shared insights into data analytics and the government’s ICT strategy; Professor Graeme Samuel AC, who updated attendees on the work of Data Governance Australia, of which he is Chair; and Annette Slunjski, General Manager of the Institute of Analytics Professionals Australia who argued for the recognition of data as a balance sheet asset.


Member Information Night and Membership Renewals



We would like to gauge interest in holding a members’ drinks event and webinar to communicate the 2017/2018 plans. Who would be interested in attending or following remotely? We could hold the event in Brisbane or Perth – given the AGM was held in Sydney and auDA’s head office is located in Melbourne. If you have a preference and for further feedback please complete this mini-survey.

You will soon be receiving membership renewal applications. As resolved by the Board in February, we ask members to note the adoption of a Member Code of Conduct. The application has been updated to include this, pursuant to clause 9.8 of the Constitution. We thank you for your support.

 

[Andrew Wright]

Is it me, or does the latest auDA newsletter seem somewhat, erm... aggressive?

 

[DomainNames]

Is it me, or does the latest auDA newsletter seem somewhat, erm... aggressive?

Aggressive ...Threatening?....Let them try it.. In any court I think they will be the ones put on the spot once there is some legal discovery and witnesses called. Media will love that story.. Luckily some people have access to very good records going back a very long way no matter what some people think they can delete or deny.
Lucky Ned recorded the AGM. auDA should do the AGM streamlined live online and public. Promote the use of the internet maybe???

 

[Lemon]

Recommendation 6.1: A listed entity should provide information about itself and its governance to investors via its website.

The ASX principles and guidelines do not in any way state that effectiveness in engagement with security holders is achieved through publishing Board agendas and minutes.

http://www.asx.com.au/documents/asx-compliance/cgc-principles-and-recommendations-3rd-edn.pdf

These Principles and Recommendations set out recommended corporate governance practices for entities listed on the ASX that,
in the Council’s view, are likely to achieve good governance outcomes and meet the reasonable expectations of most investors in most situations.

The Council recognises, however, that different entities may legitimately adopt different governance practices, based on a range of
factors, including their size, complexity, history and corporate culture. For that reason, the Principles and Recommendations are not
mandatory and do not seek to prescribe the corporate governance practices that a listed entity must adopt.

Recommendation 6.1
A listed entity should provide information about itself and its governance to investors via its website.

Commentary
In the digital age, investors expect information about listed entities to be freely and readily available.
A listed entity should have a website with a “corporate governance” landing page from
where all relevant corporate governance information can be accessed. There should be
an intuitive and easily located link to this page in the navigation menu for the entity’s website.

A listed entity should include in the corporate governance area of its website links to:

• the names, photographs and brief biographical information for each of its directors and senior executives;
• its constitution, its board charter and the charters of each of its board committees;
• the corporate governance policies and other corporate governance materials referred to in these recommendations.

A listed entity should also include in an appropriate area of its website links to:

• copies of its annual reports and financial statements;
• copies of its announcements to ASX;
• copies of notices of meetings of security holders and any accompanying documents;
  
• if it keeps them, webcasts and/or transcripts of meetings of security holders and copies of any documents tabled or otherwise made available at those meetings;

 

[Andrew Wright]

Direct Registration
no system is foolproof — but we believe this strikes a good balance between convenience (being able to complete the survey without inconvenient CAPTCHAs or account creation) and data integrity..

Why do auDA approve "inconvenient CAPTCHAs" on au whois (http://whois.ausregistry.net.au/whois/whois_local.jsp?) but not on surveys?

Just asking.

 

[Lemon]

ACNC: Governance Standard 2: Accountability to Members
This standard requires charities (including companies limited by guarantee) to:
Take reasonable steps to be accountable to their members, and allow their members adequate opportunities to raise concerns about how the charity is run. Being accountable includes letting the members know about the charity’s activities and what the results of those activities are. It also includes allowing members to raise concerns and ask questions about how a charity is run.

Again, publishing Board minutes and agendas do not fulfil this objective.

ACNC Minutes
http://www.acnc.gov.au/iMIS/ContentManagement/Search.aspx?SearchTerms=minutes

 

[Lemon]

For the general public wishing to take part via our website, we are budgeting on receiving about 2,000 responses for the general public group.

I wasn't aware that there would be budget restraints on such an important issue.

 

[DomainNames]

I wasn't aware that there would be budget restraints on such an important issue.

And guess what... Supply has now finished that 2000 survey quota... thank you.

 

[Scott.L]

I wasn't aware that there would be budget restraints on such an important issue.

What? Do they get charged per click?

Is it monetised in a way to pay the creators $1 for yes and $0.01 for No

 

[Scott.L]

The decision taken earlier this year was that the most effective way of communicating with members, and what is considered best practice, is by way of monthly member newsletters.

so I pay $22 per year for a subscription to an organisation that sends me a monthly email informing me everything is ok; but, I need to elect a director based on that information you send me? sounds fair, unbiased, great.

 

[Bacon Farmer]

"...we ask members to note the adoption of a Member Code of Conduct. The application has been updated to include this, pursuant to clause 9.8 of the Constitution. We thank you for your support."

Get f@cked!

 

[DomainNames]

"...we ask members to note the adoption of a Member Code of Conduct. The application has been updated to include this, pursuant to clause 9.8 of the Constitution. We thank you for your support."

Get f@cked!

+ 7
NO ....We ask you to resign, be transparent and accountable

 

[Lemon]

Now because of this I missed my last bid on Ebay that I have been watching for a week.
And it went for a bargain

 

[DomainNames]

8 WINDING UP auDA

On dissolution of the Company, the right to administer the .au ccTLD must either be transferred on to another entity nominated or approved by the Commonwealth of Australia or, in the absence of such approval, be transferred to the Commonwealth of Australia.

If upon the winding up or dissolution of auDA there remains, after the satisfaction of all its debts and liabilities, any property or money whatsoever, the remaining assets shall not be paid or distributed to the Members but shall be transferred to the subsequent entity approved by the Commonwealth of Australia to manage the .au ccTLD.

 

[snoopy]

Is it me, or does the latest auDA newsletter seem somewhat, erm... aggressive?

Enormous number of people looking at AUDA right now. The member code of conduct is part of the same thing, a passive aggressive attempt to try and silence members.

Lucky Ned recorded the AGM. auDA should do the AGM streamlined live online and public. Promote the use of the internet maybe???

Ned joked the other day that AUDA will probably frisk him at the AGM, personally I think there is more truth to it than he'd like to think, wouldn't be surprised to hear about some rule about recording before the AGM, they'll be banning pen and paper the following year. They must be very annoyed that all their backtracks and misstatements are on tape.

 

[neddy]

They won't like what I have written today then.

“SS auDA” – You Need To Change Course!

"I’m presuming that Cameron Boardman (the CEO) was responsible for the content of the newsletter. He certainly would have signed off on it. So let me say this. The screeds of “stuff” written in an attempt to justify the decision to backtrack on your promises of transparency and communication are unbecoming of a true leader – in my humble opinion. In Far North Queensland, we call this type of conduct bullsh*t."​

 

[DomainNames]

Ned at least you are speaking up..
auDA Demand Board member Tim is now silent
auDA Demand Board member Simon is silent
auDA Supply Board member Erhan is silent
auDA new board members... not even on the www.domainer.com.au or www.dntrade.com.au websites probably
......most auDA board members... are not even reading and seemingly do not care or have NO CLUE what is going on.. they are too busy on their other jobs and boards... For some it appears having "auDA Director" or auDA "Board Member" on their linkedin profile or resume is all they wanted.. We have all seen this before..

When I provided vast materials, suggestions and issues to the new CEO Cameron Boarman to help improve things Cameron told me previously he was not losing any sleep over things... Why would he? He would still get his auDA paycheck no matter what...Care factor 1 to 10.. 3? Actual Domain Name Industry or ownership experience? Right people for job and board.. Possibly not it seems.