The disaffected group of Victorian grain growers says it's going ahead with plans to call an extraordinary general meeting to spill the Victorian Farmers Federation board and executive.
In the latest move in the internal wrangling at the VFF, the board agreed to appoint a special skills director.
That followed the resignation of three directors, as the VFF's annual conference was still in session.
One former director, Egg Council president Meg Parkinson, was joined by the leader of the grain growers faction in claiming the appointment breached the Corporations Act.
Both said the VFF did not have a quorum. and could not legally appoint the new director.
Graingrowers group spokesman Andrew Weidemann, Rupanyup, agreed.
"They have now appointed somebody outside the Corporations Act, so they are now probably subject to an ASIC investigation," he said.
"In the constitution, there is a minimum requirement for five directors - now these are not replaceable rules, under the Corporations Act.
"They didn't have the numbers to appoint a director, as per the constitution of the VFF - they are on shaky grounds."
Mr Weidemann said the group had been talking to its lawyers about its position and "intended to take something forward, next week.
"We are still progressing towards putting a resolution to an EGM - we haven't stepped away from that," he said.
The resignation of the three directors, and the proposed constitutional reform, had "really upset a lot of members, he said.
"I think we will potentially be changing the approach we have been proposing," he said.
"There is no board, we don't recognise there is a board now, because of the resignations.
"It's on the remaining directors to follow the constitution of the VFF (and call an EGM)."
He said it appeared the directors had broken the contract with members.
"The constitution is the contract, and I'll make that very specific and clear, between the members and the board."
'There are still options available to us to bring the EGM forward, the directors will be served with another notification, at some point, and the directors themselves will be responsible for that.
"If not, the members have the right to call their own EGM."
He said any EGM must take place within 60 days from lodgement with the appropriate authorities.
"The management have indicated to us they want to have the legalistic approach, rather than being open and fair minded about the way they approach the membership."