How do we estimate the subscription fee overpayments?

The power for the board to set subscription fees ended on 31 August 1997 (Article 19).

Nominet was then required by its own rules (Article 19A) to consult with members and then set subscriptions in a bye law. It has not done so. It has also lost a legal case on the issue by default. It is now trying to get that set aside.

Iain Mitchell KC’s opinion suggested two possible scales of overpayment. We provide breakdowns of each scenario below. It is harder to estimate the second figure, since we do not know how long memberships have been running in the 26 years since 1997. We have taken an average of 13 years, but each individual member can work out their own overpayment based on their own length of membership.

Minimum Possible Overpayment

Six years @ £100 a year = £600

Joining Fee is not provided for at all in the company rules
So every member is due that back @£400 per member

Total Minimum Overpayment for Members of at Least 6 years duration

2,250 Nominet Members * £1,000 = £2,250,000
Plus VAT @ 20% = £450,000

Estimated Possible Overpayment = £2,700,000

Maximum Possible Overpayment

Thirteen years @£100 a year = £1,300

Joining Fee is not provided for at all in the company rules
So every member is due that back @£400 per member

Estimated maximum overpayment

2.250 Nominet Members * £1,700 = £3,825,000
Plus VAT @ 20% = £765,000

Estimated Possible Overpayment = £4,590,000