The issues with the NSW branch of the Returned and Services League (RSL) has prompted the state government to ask for further information.
"RSL NSW is an important organisation supporting the wellbeing of veterans and their families and the government wants to see it operate with the highest standards of integrity and governance," the state's Veterans Minister David Harris said in a statement on Thursday.
The organisation and its internal affairs are independent from the government but it is considered vital enough that further information is being sought.
The minister is also writing to the organisation to ask what steps the board will take to continue operating "given they no longer have quorum on their board".
President Mick Bainbridge and board directors Paul-Raymond James, Phillip Chin and Charles New resigned on Thursday.
It came minutes before a meeting to consider the removal of Mr Bainbridge and Mr James "for serious breaches of the RSL NSW board charter, code of conduct, and conflict of interest policy".
"Their decision to resign provides the organisation with an important opportunity to move forward with a renewed sense of unity, focus, and purpose in delivering our mission to support veterans and their families," RSL NSW said in a statement. Â
RSL Australia recently urged the state branch to resolve its issues.
"Our priority must always remain the wellbeing of veterans and their families," national president Greg Melick said earlier in October.
He called on the board to resolve its issues as quickly and transparently as possible and offered the national body's assistance.
The resignations followed reports in multiple media outlets alleging dysfunction amongst the board and conflict with the state's sub-branches.
An external investigation reportedly alleged Mr Bainbridge and Mr James breached the charity's conflict of interest rules and defied its code of conduct, according to the ABC.
It included an alleged failure to disclose that the pair - partners in a law firm - were representing a former volunteer in proceedings against the charity.
The pair disputed the alleged breaches and claimed attempts to remove them were an abuse of internal processes in a bid to silence them and other members, according to the Sydney Morning Herald.
The state branch has hundreds of sub-branches around NSW and a plan to consolidate assets had been another reported source of contention.
Mr Bainbridge is suing RSL NSW with a civil directions hearing scheduled before the Supreme Court on Wednesday.
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