Despite generally avoiding matters related to membership, the ACNC has been forced to intervene in the RACP succession saga.
The Royal Australasian College of Physicians’ embattled president-elect has been suspended by the Australian Charities and Not-for-profits Commission just days before she was due to take up the reins of the organisation.
The ACNC has released a statement saying it had suspended Dr Sharmila Chandran “on the basis that it is necessary to address the Charity’s non-compliance with Governance Standard 5, which includes an obligation to take reasonable steps to meet workplace health and safety obligations”.
Governance standard five requires a charity to take reasonable steps to ensure that its responsible people – i.e. board or committee members – discharge their duties with the degree of care and diligence that a reasonable individual would exercise.
Dr Chandran has been at the centre of a very public power struggle with outgoing president Professor Jennifer Martin.
The incoming president has survived three separate Extraordinary General Meetings which were called in an attempt to prevent her from taking up the top job.
Last month, Dr Chandran called an EGM of her own in an attempt to oust Professor Martin one month early.
This final meeting devolved into chaos. Following a disagreement about who should chair the meeting, Dr Chandran’s husband allegedly called the police.
Midway through the meeting, Dr Chandran is understood to have physically taken the laptop from which the online EGM was being run and gone into a separate room.
While in this room, alone, Dr Chandran announced that members had voted 55% to 45% in favour of ousting Professor Martin roughly one month early.
After the meeting, RACP members were sent an unsigned email informing them that the EGM had not been valid and that Professor Martin would remain president.
Despite this declaration from the remaining board members, the ACNC portal information did update and Professor Martin no longer appeared among the ‘responsible people’.
Multiple board members have previously requested the ACNC’s intervention in helping to resolve the situation. However up until this week the regulator had refused to step in.
When contacted in late April, the ACNC said that it did not take an active role in mediating or resolving internal disputes within a charity.
According to the document released by the ACNC on Monday, SafeWork NSW had issued the college with an improvement notice under workplace health and safety laws roughly one month before the fateful April EGM.
This was not the end of SafeWork NSW’ involvement, though.
On 5 May, it issued a prohibition notice that banned all board members from communicating with RACP staff other than the CEO, for the purpose of instructing them to undertake activities.
“The ACNC was subsequently made aware that Dr Chandran was not complying with the directions set out in the Prohibition Notice,” the ACNC document reads.
“SafeWork NSW advised the ACNC that this behaviour was exposing RACP staff to immediate and serious risks to their psychological health and safety.”
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Dr Chandran has been provided with advice by both the ACNC and SafeWork NSW but has persisted to communicate in writing with RACP staff, the regulator said.
Her suspension is effective immediately and will continue through to 11:59pm on 20 September 2026.
The move effectively blocks Dr Chandran from assuming the RACP presidency at the end of this month as planned and deepens uncertainty around the college’s leadership transition ahead of its Annual General Meeting on 29 May
Dr Chandran will not be permitted to resume her duties beyond the end of her suspension unless the ACNC is reasonably satisfied that the college will be able to meet its obligations under workplace health and safety laws.
If the regulator is not satisfied, it can either extend Dr Chandran’s suspension, take steps to remove her from the board or take other regulatory action against the college.
In the meantime, the ACNC has appointed Susan Pascoe AM as an acting RACP board member to help address its concerns.
In its response, published in the ACNC statement, the RACP board said it would work with the ACNC to meet its obligations under the governance standards and provide a safe workplace for employees and volunteers.
“The Board also welcomes the ACNC Commissioner’s appointment of Susan Pascoe AM as an acting responsible person to assist the RACP to address the ACNC’s concerns,” it said.
“The Board will keep its members updated as to the actions it is taking to resolve these issues.”
TMR contacted the RACP and Dr Chandran for comment in relation to this latest development but had not received a response by deadline.
