The resignation of the RSL's national president "opens up a new era" for the organisation following a string of governance troubles, its interim chairman says.
RSL National president Robert Dick resigned amid the wrap-up of an external review into the organisation, conducted by auditors KPMG.
"Robert understood that for us to move forward and to install our new governance and other requirements, it was better that was managed by a new face," John King, president of the ACT branch and interim national chair, told AAP on Friday.
Mr Dick's "very emotional" announcement on Thursday came as a shock to the board but it "opens up a new era", his temporary replacement added.
"The RSL is an organisation which is over a hundred years old. Unfortunately, some of the practices were a bit outdated," Mr King said.
"KPMG is working with us to bring those into the 21st century."
In announcing Mr Dick's resignation on Friday, the Australian Charities and Not-for-profits Commission said it "puts the interests of the charity and the RSL first".
The regulator in February ordered the RSL bring in an external expert. A plan to address the organisation's governance issues is set to be finalised by the end of July.
"The governance improvement action plan resulting from the KPMG review will contain a clear set of recommendations to address current, critical governance issues and the need for a broader, more strategic process of reform and improvement," ACNC Commissioner Gary Jones said.
The regulator earlier found the RSL failed to comply with its charity obligations after outgoing president Rear Admiral Ken Doolan was gifted a car worth nearly $27,500 and $3600 in books in June 2016.
RSL NSW and its aged care arm RSL LifeCare were also ordered to implement changes following the misuse of funds.
Former NSW RSL president Don Rowe was found to have spent $465,000 of the charity's money.
Between 2009 and 2014, he used his RSL credit card for things including his mortgage and family phone bills.
He also paid for one of his children to stay at an RSL-owned Sydney CBD hotel, and allowed his son to stay there without paying rent for seven years.
Mr Dick has been contacted for comment about his resignation.
