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The Church has always been need of Reform. As Catholics we believe that the Church is Divine, in that Jesus founded it, and promised to remain with it. He also promised that he would send the Holy Ghost to guide it. We believe that while we are individually inspired by the grace of God to improve out daily lives, we do not have the same guarentee as individuals as the Church as a whole does in the Magesterium.
From the time of the Apostles to today, there are those within the Church who understand the faith in an erronious way, or who do not follow the moral and dogmatic teachings of the Church. Even in times when most of the members of the Church, clergy and lay alike did not follow what the Church teaches, the teachings, were never compromized. They remained intact.
The question comes is it ever appropriate to remove oneself from communion with the rest of the Church, or should one do everything they can to work for reformation within the body of christ.