Dr Sharmila Chandran RACP Suspension May 20: Regulator Halts Presidency

The Australian Charities and Not-for-profits Commission (ACNC) has suspended Dr Sharmila Chandran as a responsible person of the Royal Australasian College of Physicians (RACP), one of Australia’s oldest medical colleges. The suspension, effective until September 20, 2026, prevents her from assuming the presidency just 10 days before her scheduled start date. SafeWork NSW, which oversees workplace health and safety compliance, had issued a directive restricting all board directors from communicating with staff except through the CEO. Chandran allegedly breached this order, triggering the regulatory action and raising serious questions about governance and compliance within the prestigious medical institution.

ACNC Suspension and Timeline

The ACNC issued the suspension notice on Monday, May 19, 2026, barring Chandran from her role as a responsible person until September 20. This timing is critical—she was set to become RACP president in just 10 days. The suspension prevents her from exercising any governance responsibilities during this period, effectively blocking her presidency indefinitely.

The college, a registered charity, falls under ACNC oversight. The regulator’s action signals serious concerns about Chandran’s compliance with workplace safety directives and her fitness to lead the organization during an ongoing investigation.

SafeWork NSW Investigation and Alleged Breach

SafeWork NSW initiated scrutiny of RACP over alleged bullying within the organization. Earlier this month, the regulator issued a formal order restricting all remaining board directors from communicating with staff except through the CEO. This directive was designed to protect staff and prevent further alleged misconduct.

Chandran has been accused of breaching this order, allegedly communicating directly with staff in violation of the SafeWork NSW directive. This breach formed the basis for the ACNC’s suspension decision.

Governance Crisis at RACP

The suspension exposes significant governance challenges at the Royal Australasian College of Physicians. The organization faces dual regulatory scrutiny from both SafeWork NSW and the ACNC, indicating systemic issues beyond individual compliance failures. The college board remains under active investigation for workplace bullying allegations, creating uncertainty about leadership and institutional direction.

The timing of Chandran’s suspension—just days before her presidency—suggests the regulatory bodies acted decisively to prevent potential further breaches during her tenure as president.

Implications for Medical Leadership

This suspension raises critical questions about accountability and governance standards within Australia’s medical profession. The RACP, representing thousands of physicians, now faces a leadership vacuum at a crucial moment. The suspension demonstrates that regulatory bodies will enforce compliance strictly, even at the highest organizational levels.

The incident underscores the importance of workplace safety compliance and the consequences of breaching regulatory directives, particularly for leaders in trusted professional institutions.

Final Thoughts

Dr Sharmila Chandran’s suspension from the RACP presidency represents a significant governance crisis for one of Australia’s most respected medical institutions. The ACNC’s decision to bar her from office until September 20, 2026, over alleged breaches of SafeWork NSW directives, signals zero tolerance for non-compliance at leadership levels. The suspension blocks her presidency indefinitely and raises serious questions about workplace culture and governance standards within the college. This case demonstrates that regulatory oversight applies equally to senior leaders, and compliance with workplace safety orders is non-negotiable.

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