Disputes over control of associations, temples, churches and their property
Reviewed by Justin Chua, principal, Chua Tan Associates · Updated 18 October 2026
Control disputes in community associations are usually decided by the association’s own rules, the law under which it is incorporated and, where property is involved, trust law. Courts will intervene, but they expect internal procedures to be used first and they act cautiously in internal affairs. Mediation or an independently chaired general meeting is often faster and cheaper than litigation.
What these disputes look like
Chinese community associations, temples, clan associations, churches and weekend schools often run for decades on goodwill, built up with donations until they buy a building. Disputes tend to start when a generation changes, a new group joins in numbers, or property is at stake. We commonly see:
- Contested AGMs and elections: notice, quorum, proxies and who could vote.
- Membership applications left undecided, rejected in bulk, or accepted in bulk just before a vote.
- Two rival committees, each claiming to be the lawful one.
- Changed bank signatories, or banks freezing accounts after conflicting instructions.
- Plans to sell, mortgage or transfer the temple, church or hall.
- Disputes about whether donated property belongs to the association, to individuals, or is held on trust.
Incorporated associations in Victoria
Most Victorian community groups are incorporated under the Associations Incorporation Reform Act 2012 (Vic). An association’s rules (its constitution) are taken to be a contract between the association and its members (section 46). If the rules do not deal with a matter that the model rules cover, the model rules may fill the gap. The rules must contain a grievance procedure for disputes between members, or between members and the association. Each party must have the opportunity to be heard, and an unbiased decision-maker must decide the outcome (section 55).
Consumer Affairs Victoria registers associations and enforces the Act, but it does not resolve internal disputes, investigate alleged breaches of an association’s rules or give legal advice. Members who cannot resolve a dispute internally can apply to the Magistrates’ Court to enforce the rules (section 67), or for orders about oppressive conduct (section 68). Those orders can include changes to the rules. A proceeding can be transferred to the Supreme Court in some circumstances (section 69), and disputes involving land, trusts or urgent injunctions are often brought in the Supreme Court. In NSW, the equivalent law is the Associations Incorporation Act 2009 (NSW).
Companies limited by guarantee and registered charities
Larger bodies, including some schools and religious organisations, are companies limited by guarantee under the Corporations Act 2001 (Cth), where the constitution, directors’ duties and members’ remedies (including the oppression remedy) apply. Many are also registered charities bound by the ACNC Governance Standards, such as acting in line with their purposes and being accountable to members. The ACNC can act on serious governance failures, but it does not decide which faction wins.
Invalid meetings and elections
Most control disputes come down to whether a meeting was valid. Was notice given to every member as the rules require? Was there a quorum? Who was a member on the relevant date? Were proxies valid? Courts read the rules closely, but do not always set aside a meeting for a technical defect, and delay counts against the complainant.
In [Chen v The Australian Shaanxi Chamber of Commerce Inc [2020] NSWSC 1594](https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/nsw/NSWSC/2020/1594.html), former office bearers challenged the election of a new president and sought to stop him signing further agreements. Although it was conceded there was a prima facie case that the election breached the constitution, the court refused an interim injunction: the new office bearers had run the chamber for over a year and the applicants had not moved quickly. If you dispute an election, act promptly.
Membership: the battle behind most votes
Whoever controls membership usually controls the vote. In [Singh v Brisbane Sikh Temple (Gurdwara) Inc [2022] QSC 17](https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/qld/QSC/2022/17.html), a temple committee rejected more than 2,000 membership applications after a sudden surge before an election. The court held that the committee had a discretion over membership but had exercised it for an improper purpose. It declared the rejection void and ordered the applications to be reconsidered. In [Moala v Free Wesleyan Church of Tonga in Australia (Vic) Inc (No 7) [2022] VSC 599](https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/vic/VSC/2022/599.html), a church group sought to delay an AGM until 75 pending membership applications were decided. The Supreme Court refused the injunction, partly because any invalid rule change could be challenged later. Together, these cases show that courts will step in where committee power over membership is abused, but will not delay meetings lightly.
Property held for the community
The key question is who holds title. An incorporated association usually holds property in its own name. Older temples and halls are sometimes registered to individual trustees, or bought with donations given for a stated religious or charitable purpose. Such property may be held on a charitable trust, which must be honoured whoever controls the committee; the Attorney-General has a role in protecting charitable trusts. Before any sale or mortgage, obtain a title search, any trust deed, and trace how the property was paid for.
Urgent steps: injunctions and bank accounts
If a disputed committee is about to sell property, change bank signatories or move funds, an urgent injunction may be needed. The court asks whether there is a serious question to be tried, where the balance of convenience lies and whether the applicant acted promptly, and usually requires an undertaking as to damages. Banks given competing instructions often freeze the account. That protects the funds but can stop rent, wages and utilities being paid, so an interim agreement on essential payments is often sensible.
Why courts are cautious, and the cost
The traditional starting point, from [Cameron v Hogan [1934] HCA 24](https://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/HCA/1934/24.html), is that courts will not enforce the rules of an unincorporated voluntary association unless a proprietary right or binding contract is involved. Incorporation and statute have changed that considerably, but judges still expect internal procedures to be used first. Supreme Court litigation can cost more than an association’s annual budget, costs orders can fall on committee members personally, and reputational damage with members and donors can outlast the case.
Practical solutions
The most durable outcomes usually come from:
- Mediation between the factions, in the language members are comfortable with.
- An independently chaired general meeting, with an agreed membership list, agreed voting rules and an independent returning officer.
- Interim arrangements for bank accounts and property while the dispute is resolved.
- Updating outdated rules once control is settled.
How we help
Chua Tan Associates acts for associations, committees and members in these disputes in English, Mandarin and Cantonese. Where both sides are willing, a private resolution, including independent chairing of a general meeting, can be arranged through the Chinese Australian Dispute Resolution Centre (CADRC). Contact us on +61 3 9602 3988.
FAQs
Can Consumer Affairs Victoria decide who the lawful committee is?
No. Consumer Affairs Victoria does not resolve internal disputes or investigate alleged breaches of the rules. The parties must use the grievance procedure, mediation or the courts.
Can the committee refuse our membership applications?
It depends on the rules. Even where the committee has a discretion, it must use it in good faith and for a proper purpose, not to control the outcome of an election.
Can the committee sell the temple or church building?
Only if the rules and the way the property is held allow it. If the property is held on a charitable trust, it may only be dealt with in line with that trust.
The bank has frozen our account. What now?
Banks usually freeze an account when they receive conflicting instructions. The fastest solution is often a written interim agreement between the factions on signatories and essential payments, or failing that, court orders.
Who pays the legal costs?
Costs follow the court’s orders and can be large compared with association funds. Committee members should not assume the association will cover their personal costs, and should get advice before starting or defending proceedings.
Talk to us about your matter
Book a confidential consultation in English, Mandarin or Cantonese, or call +61 3 9602 3988.
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General information only, not legal advice. Every matter turns on its own facts. Reviewed by Justin Chua, principal, Chua Tan Associates.
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