Incorporated Associations

Disputes

Who is responsible for handling disputes between an association and a member?
Does Consumer Affairs have the authority to investigate or intervene in my dispute?
In what matters can Consumer Affairs intervene?
Reports of Suspected Breaches
What should I do if I have a dispute?
Legal advice
Other available remedies

Who is responsible for handling disputes between an association and a member?

The principal concern of the Associations Incorporation Act is to ensure that the public record is clear and up-to-date so that any third party dealing with the association does so in full knowledge of the association's affairs.

It is not a function of the Office to either offer legal advice or to intervene in the internal matters of incorporated associations that involve member's disputes.

The management of an association is in the hands of a executive committee, which is responsible for the administration of the affairs of the association (including the handling of internal disputes) in accordance with the Act and the rules of the association.

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Does Consumer Affairs have the authority to investigate or intervene in my dispute?

The office does not have the authority under the Act to investigate or to intervene in any of the following matters:

Disputes relating to a breach of the association’s rules

The rules of an association bind the association and its members in the same way as a contract and each member agrees to observe all of the provisions of the rules.

The rules are a means for an association to manage or administer its own affairs. Non-compliance with the rules of an association is a private or civil matter to be pursued by the parties bound by the rules i.e. the association and its members.

Where a member believes the association has breached the rules, the matter should be taken up with the association.

Disputes between a member and another member OR a member and the association

It is not a function of Consumer Affairs to adjudicate on matters concerning the rights of members. These are matters that should be dealt with by the parties to the dispute.

Disputes relating to the mishandling of funds

Theft by employees of an association, does not involve a possible breach of the Act. This type of matter should be referred to Tasmania Police.

Disputes involving the conduct of a general meeting or the process by which members of the committee are elected

Consumer Affairs does not have the authority to determine the validity or otherwise of a general meeting or of an election result.

The validity of the appointment or of the removal of a public officer

Disputes relating to the appointment and removal of a public officer are often the result of broader issues. Consumer Affairs does not have the authority under the Act to make a formal determination as to whether the appointment or removal of a public officer was validly undertaken.

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In what matters can Consumer Affairs intervene?

Consumer Affairs may deal with complaints that amount to a breach of the provisions of the Act. These may relate to:

failure to ensure proper accounting and other records are kept by the association (section 23a)

failure to appoint a public officer or to change details of a public officer (section 14)

failure to lodge rule changes (section 28)

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Reports of Suspected Breaches

Written reports of suspected breaches of the Act should be made to Consumer Affairs and should include:

the name of the association, and its registration number (if known)
the names of the persons suspected of wrongdoing
full details of the misconduct including the actions, dates and places in sequential order
if known, the provisions of the Act that may be relevant
any relevant documentary material that may be used as evidence, such as letters or minutes
the names and addresses of the persons who may have witnessed, or have information concerning, the suspected conduct or activity
any report by an expert, e.g. an accountant or auditor, provided to the association in relation to the alleged conduct
reference to any other authority that has been approached, e.g. the Tasmanian Police, and what action the authority has or may be taking. If the person has been convicted of an offence in relation to the matter as a result of police intervention, include any relevant documentary material

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What should I do if I have a dispute?

If a dispute arises between a member and an association attempts should be made to resolve the dispute directly between the parties. The dispute resolution mechanism within the rules adopted by the association should be used.

If the association’s rules do not include a dispute resolution section 34 of the model rule provides for disputes.

If the matter remains unresolved, members may wish to seek independent legal advice or to use professional mediation service.

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Legal advice

You can receive free legal advice from the Legal Aid Commission their phone number is 1300 366 611. In limited circumstances, advice also may be available from your local Community Legal Centre. Alternatively, you may wish to seek advice from a legal practitioner.

Consumer Affairs does not provide legal advice to associations or to individual members of an association in relation to internal disputes or in relation to the interpretation of rules of the association.

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Other available remedies

There are a number of courses of action available to an association or its members. Some of these are outlined below:

There are a number of books available that describe good management and administrative practices including the proper conduct of meetings, which may provide help to resolve an administrative breach

If members believe that the association's affairs are not being conducted in accordance with their wishes, the members may consider calling a meeting of members to discuss the issue and decide on an appropriate course of action

If the matter concerns a dispute, the parties may consider meeting to resolve the dispute, or if it cannot be resolved at a meeting, the parties may choose to meet and discuss the dispute in the presence of an independent third person agreed to by the parties

The association may consider the inclusion of a suitable dispute resolution procedure in the rules of the association

A member may pursue remedies with the Supreme Court or the Magistrates Court

Where the rules are clearly deficient, e.g. in dealing with the internal organisation or administration of the association, the association may consider members' approval of an alteration to the rules.