THE Episcopal Standards Commission will take no action against Ballarat Bishop Michael Hough, who was the subject of misconduct allegations made two years ago.The Episcopal Standards Commission (ESC) was this week notified that the Anglican clergy and lay people withdrew their complaints.Thirteen clergy and lay people withdrew their complaints after they entered into a confidential deed of settlement between their group, Bishop Hough and the Ballarat diocese.In a statement released yesterday the ESC said it "has determined to take no further action pursuant to the Special Tribunal Canon in relation to any matter raised by the complainants".Bishop Hough has polarised parishioners in his seven years at Ballarat and was the subject of misconduct allegations made in late 2008 to the ESC.The embattled church leader's resignation was announced last Saturday at a synod in Portland by Melbourne Assistant Bishop and Acting Ballarat Vicar-General Philip Huggins. It will take effect on December 20, with a 12-member committee elected to find his replacement.Uncertainty persists over whether Bishop Hough, who remains on sick leave and did not attend the synod, will return to his duties this year.Ballarat Laity Against Bullying spokesman Euan Thompson said the fact the dispute had been resolved was a very good thing."It was tearing the church apart, this dispute. The ESC decision makes a lot of sense," Mr Thompson said."There was no need for it to continue because it was resolved."