Some Clubs formed after 1926 did not accept the concept of the Federal Council. During the third annual conference of the Federal Council held in Ballarat in April 1929 Clubs agreed to dissolve the Council and, in its place, establish a Central Liaison Committee (CLC). The role of the CLC, which was formed in 1929 and based in Melbourne, was to ensure "co-operation", not "co-ordination". All Clubs accepted the basic objective of Legacy was the care of deceased soldiers' dependants.

At the 1930 Legacy Conference Melbourne Legacy's Charter was adopted which began, " The spirit of Legacy is service..." and ended with, "...and keep fair the name of Legacy". Except for amendments to include wars subsequent to the Great War, this Charter remains unchanged.
In an effort to strengthen the position of a unifying body for the Legacy movement, two Melbourne legatees (Legatee Savige and Legatee Kemsley) came up with a plan to have a Legacy Co-ordinating Council.

They recommended the President and Secretary of this Council be chosen by the Conference Club and that they should not be holding any office in their Club; members of Council would be from each State parent Club and one representing Clubs in each State; and Conferences and the site of Co-ordinating Council be restricted to three cities- Melbourne, Sydney and Adelaide.

After considerable debate and discussion and with a few amendments, the proposal to have a Co-ordinating Council was agreed and it was established on February 12, 1938 with Legatee Savige as its first President. CLC was then disbanded.

Later in 1938, Sydney Legacy recommended Co-ordinating Council remain in Melbourne, rather than come to Sydney. Next year, 1939, Sydney and Adelaide Clubs moved that Council be permanently based in Melbourne for purposes of continuity.

Ten years were to pass before the role of Co-ordinating Council was settled. The "Statement of Purposes" of Legacy Co-ordinating Council is set down in Legacy Statutes.