- by David Goldstein -
The current global economic climate is a tough one for businesses, with many facing difficult decisions and some even going insolvent. This is never a nice time for any business. To reflect the time, in New Zealand the Domain Name Commissioner has issued a guide on how to deal with .nz domain names when a business closes. As the DNC notes, domain names held for many years may be lost in an insolvency.
The guide released by the DNC is aimed at the insolvency industry with information to help companies placed in liquidation on what to do with their domain names. It supplements the work the DNC already does with the New Zealand Treasury when a company is struck off the companies register. This pre-existing process can permit a former Director and shareholder to license a struck off company’s domain name.
The guide notes it is highly likely that when a New Zealand-based company is liquidated, it will hold registrations for one or more .nz domain names. These names can be regarded as ‘property’ under the New Zealand Companies Act (1993) and may, or may not, have resale or other, intangible, value. It is also important that companies that hold .nz domain names have a financial obligation to keep paying their registration fees whether liquid or insolvent.
It should be noted it is not just in New Zealand that when a company is liquidated it will likely hold domain name registrations, and it is a requirement for all top-level domains that registration fees must be paid whether a company is solvent or insolvent.
The guide is available on the NZ Domain Name Commissioner’s website.