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4. External grievance procedures

Most grievances and disputes can be resolved using internal informal and formal procedures. In some cases, however, it might be necessary to use a process outside the association to resolve a matter.

4.1 Courts

An application can be made to a court to settle certain disputes, for example, where a committee member has mismanaged association funds. However, resolving disputes through court action is likely to be costly and may not have the desired outcome. Courts are generally reluctant to interfere with the internal management of associations, particularly where the members have the power to resolve matters themselves.

4.2 Commerce

Commerce's role is to ensure compliance with the Act. Associations, or more correctly, committee members, not complying with the Act can be investigated and prosecuted. Under certain circumstances, Commerce can also initiate proceedings to have an association wound up or cancel an association's incorporation.

If there has been a breach of the Act, a formal complaint can be made to Commerce. For example, if a committee member refuses to make the members' register available for inspection.

The following details should be included in the complaint:

  • the name of the association and its registration number (if known);
  • a postal address for the association;
  • the name and title of an appropriate office bearer;
  • full details of the alleged breach of the Act;
  • any documents that support the allegation; and
  • the name and address of the person making the complaint.

Commerce has developed an information sheet entitled “Complaints about Incorporated Associations”.

It is highly recommended that anyone thinking of lodging a complaint against an association read the information sheet carefully before submitting their complaint.

It is not Commerce's role to resolve internal membership disputes concerning the application of the rules of association that are outside the requirements of the Act. For example, a dispute about membership fees or the number of people who should serve on a committee. The Association must deal with such matters using the internal or external grievance procedures.

4.3 Professional dispute resolution services

An association can make use of professional mediation and dispute resolution services that are available. These services provide intervention in the form of negotiation, mediation and arbitration. This may avoid court action and the services are generally less time consuming and costly.