With the introduction of the Incorporated Societies Act 2022, every incorporated society must have a fair, transparent, and accessible process for dealing with disputes and complaints. This change is intended to help disputes to be resolved efficiently, while ensuring all parties are heard and treated fairly.
The below is a general guide on navigating a dispute under the Incorporated Societies Act 2022, please refer to your society’s constitution for further details, or get in touch for assistance.
When would an issue be called a ‘dispute’?
Disputes commonly arise between a society and its members, between members themselves, or between a member and an officer of the society where the matter relates to the affairs, rules, or decision-making of the society.
A dispute may concern:
- an alleged breach of the constitution or policies;
- unfair treatment of a member (for example, a member’s rights or interests have been damaged); or
- conduct that is said to be inconsistent with the Act or the society’s governing documents.
Current and former members may bring complaints where the issue relates to their membership or prior involvement with the society.
How do I make a complaint?
If you have a complaint, you should read through and follow the process outlined in the society’s disputes policy. Usually this involves raising your complaint in writing and providing it to the society’s secretary or another officer nominated to receive complaints.
The complaint should clearly identify:
- who is making it;
- who it concerns;
- the substance of the issue; and
- sufficient detail so that the society can understand what has occurred and what outcome is sought.
Once the complaint has been received, the society should acknowledge the complaint within a reasonable timeframe and outline the steps that it will follow under its disputes process.
Investigating and determining a dispute
After the society receives a complaint, it must determine whether its disputes process should be engaged. If it does proceed, the committee may investigate and determine the matter itself or appoint an independent person or panel to do so. Whoever undertakes this role for the society must act impartially and without conflicts of interest.
The investigation should be proportionate to the nature of the dispute. This may involve seeking further information from the parties, reviewing relevant documents, and making reasonable inquiries to understand the facts.
When all relevant information is considered, the decision-maker must reach a determination. This must be fair, reasonable, and consistent with the Act and the society’s constitution. The outcome, together with reasons for the decision and any required actions, should be communicated to the parties in writing.
If I raise a complaint, what are my rights?
A person who makes a complaint must be given a reasonable opportunity to be heard before the dispute is determined. In most cases this will involve providing written submissions and supporting information. Where appropriate, the decision-maker may also allow the complainant to be heard orally.
What if I’m the subject of a complaint?
Any person who is the subject of a complaint is entitled to procedural fairness. They must be informed of the complaint and the allegations made against them in sufficient detail to enable a proper response.
Before any adverse decision is reached, you must be given a reasonable opportunity to present your position, provide explanations or evidence, and address the issues raised. No disciplinary or other adverse action should be taken unless this opportunity has been afforded.
If you are concerned that an issue may engage your society’s disputes resolution procedure, or if you would like to know more about what procedure your society should follow – get in touch with us.
