Managing association disputes
Sometimes disputes arise within incorporated associations.
Your association must have a grievance procedure in place to manage disputes internally.
If you can't resolve a dispute, the Dispute Resolution Branch of Queensland Government can provide mediation services.
The Office of Fair Trading cannot make orders or decide disputes for you. If your association cannot resolve a dispute, the Supreme Court is the only authority that can resolve the dispute or make orders about how the association is run.
Watch our video below to learn more about managing disputes within incorporated associations.
People are involved in incorporated associations because they are passionate about sports, hobbies, their community with specific issues or interests. There are about 23,000 registered associations in Queensland. While most operate smoothly, disputes within associations occasionally happen. Here's what you should know about managing an association and dealing with disputes within your group.
The Association's Incorporation Act 1981 provides non-profit groups with a method of registration, which gives an association certain legal advantages in return for accepting certain responsibilities. Community groups that become incorporated are set up under a constitution and become a legal entity.
The Constitution puts a contract in place between the association and its members. Groups can write their own constitution as long as it meets legal requirements.
Alternatively, they can use the model rules published by the Office of Fair Trading. The members of the group democratically elect a management committee and approve the constitution. The management and day-to-day activities of the group are the responsibility of the management committee. Interpretation of the association's constitution and its application to situations that arise are also the responsibility of the management committee.
Incorporated associations are often made up of people with diverse backgrounds, opinions, ages, and beliefs. Having a broad spectrum of views is a benefit for associations, but it can occasionally mean differences of opinions may arise which can lead to arguments and division within the group.
Disagreements can be about many things that come up within a group. Some examples include how the group is being run. Different interpretations on the constitutional rules. Whether decisions made will contribute to the aims of the group. Arguments about meetings, budgets, expenditures, fees or processes. Cancelling the membership of people involved in the group. Refusing to accept new members to the group. And the rights of members.
Associations should always try to resolve disputes internally. Communication is important and associations should make sure all people involved in a disagreement have had the opportunity to raise their concerns and be heard. We suggest discussing the issue at an informal meeting, encouraging the impacted members to attend and participate. Ideally, this meeting should resolve the issue.
When members of an association remain unsatisfied, they can take steps to advocate for the activities or changes they seek. These steps will be outlined within the association's rules.
If a dispute hasn't been resolved through an informal meeting, you can call a special general meeting to resolve the issue. It's important to remember that the Office of Fair Trading is unable to intervene in disputes within associations.
While we are responsible for the administration of the Associations Incorporation Act, we do not have the power to interpret an association’s rules; oversee the decisions or day to day business of an association; or intervene in internal disputes.
How associations conduct themselves is up to the members through the actions of their elected committee.
If associations or their members are unable to resolve an issue internally, we recommend organising free mediation through the Department of Justice and Attorney-General's Dispute Resolution Branch. Taking part in mediation can save time, legal fees and court costs for you and the community as a last resort.
If a member believes the association is not being operated in accordance with its rules and has been unable to resolve the dispute within the organisation, they have the option to pursue the matter through the Supreme Court. The Supreme Court can make orders about association disputes. This can be extremely time consuming and costly, so you should strongly consider finding a solution before pursuing this option.
Managing disputes can be difficult. We encourage associations to have an internal dispute resolution procedure in place as it can help resolve disputes quickly and fairly.
For more information about managing associations, visit our website or check out our Incorporated Association's guide.
Internal processes
To strengthen your association's ability to manage disputes, we recommend that you:
- appoint a member to be in charge of receiving and dealing with complaints
- set up a system to record, track and monitor complaints
- keep a record of any complaint that goes to mediation or court.
Grievance procedure
Your association's rules must include a grievance procedure. If your association doesn't have a grievance procedure, the procedure outlined in section 12A of the model rules will apply to your association. The grievance procedure needs to:
- allow a member to appoint someone else to act on their behalf
- give each party in a dispute an opportunity to be heard
- allow for unbiased mediation if the dispute can't be resolved internally
- ensure that any person allowed to decide the outcome of the dispute is unbiased.
When dealing with a dispute, the association must not take disciplinary action against a member or their representative until they've completed the grievance procedure.
If you don't have a grievance procedure, the Office of Fair Trading has a draft example you can use.
If you can't resolve a dispute
You can get free mediation from one of our dispute resolution centres.
If the issue cannot be resolved internally or via mediation, the member/s who are aggrieved or the association can apply to the Supreme Court to handle or resolve the dispute.
The Supreme Court is the only authority that can make orders about how an association is run. The Office of Fair Trading can't intervene in internal disputes.
More information
Read the Smart business guide for incorporated associations for guidance about starting and running an association.