We are often called on to assist incorporated societies with disputes. This is why the Incorporated Societies Act 2022 requires all incorporated societies to have a dispute resolution procedure.
While a procedure is a great starting point, on its own it is not a silver bullet. In this article we discuss why and offer practical tips on disputes.
What disputes do we see?
The most common disputes we see are due to:
- People interpreting the rules differently due to ambiguity in the constitution. Where there is ambiguity, there is room for different and even contrasting interpretations and therefore conflict.
- Officers simply not following the society’s constitutions. This is a fundamental obligation and failure to do so can raise the ire of members and prompt actions to remove officers.
- Personality and behaviour clashes between members or between members and officers, or between officers.
- Officers pursuing opposing agendas, leading to conflict within the Committee.
What are the consequences
There is often an emotional toll for people involved and for the wider society. We have seen lifelong friendships destroyed and societies wound up. When lawyers are required, there is also a financial cost for the society that will likely be borne by the society as a whole.
How to prevent disputes
Here are our top tips for avoiding disputes:
- Have a clear constitution – Remove ambiguity from your constitution.
- Follow the rules – The rules bind members and officers. If the rules are no longer fit for purpose, change them, but avoid simply not following the rules because they are inconvenient.
- Communicate well – Members are at the heart of incorporated societies. Keep members informed of what decisions have been made and why. In our experience, the greater the transparency, the higher the trust.
- Set behaviour expectations – Constitutions (rules) generally focus on what to do without much focus on behaviour. Consider using a Code of Conduct to set out behaviour expectations, or embed these in the constitution. Consider making it an obligation of membership to adhere to specific behaviours.
How we can help
We can help by updating constitutions and drafting a Code of Conduct. We can also advise on the best way to communicate with members on sensitive matters. Reach out to us if you would like to discuss your situation.
If the dispute escalates, our disputes team is highly skilled in seeking the best legal outcome.
