The Health Workers Union (HWU) has been placed into interim administration after the Health Services Union (HSU) secured a major Federal Court victory.
Former National Union of Workers General Secretary Charlie Donnelly has been appointed as the interim administrator.
The latest decision comes 10 days after the Federal Court restrained HWU Secretary Diana Asmar from carrying out any duties of branch secretary, effectively standing her aside from the position.
HSU National Secretary Lloyd Williams said the union's strong action to deal with the allegations was vindicated.
"This outcome is a big win for HWU members and justifies the resolve of our union in seeking interim administration," he said.
"Now the critically important work of refocusing the HWU on putting members' interests first can begin under the interim administrator.
"Serious allegations of misconduct remain before the court and this outcome vindicates our proactive approach in addressing these issues."
The HSU National Executive has a steadfast commitment to accountability and transparency.
"Our union has consistently sent a strong message that we will use every opportunity at our disposal to protect members' interests and the integrity of this branch," Mr Williams said.
"I want to reiterate that we have zero-tolerance for any misuse of members' funds."
