The exclusive, male-only Nelson Club has refused to vote on an amendment to its laws that would ban "hate speech" in its premises while passing a rule that gags members from speaking out.
The move comes in the wake of alleged racist and homophobic slurs by a member which resulted in the resignation of its former chairperson.
The club held a special general meeting on Friday to decide the fate of a member who is alleged to have made anti Muslim and homophobic comments at an event late last year. The incident led to the resignation of the then club chairperson, when the committee refused to censure the member in question.
The member in question stepped down from the club's committee but at the meeting was permitted to keep his membership while the club voted to make an amendment that would make it forbidden to speak publicly about club business. However, the meeting would not hear an amendment to ban hate speech.
In a press release the club president Scott Dodd said that the meeting was an opportunity to "send a clear message that intolerance and bigotry have no place within the club". It said it censured the member and stated that the club was "inclusive of all ideologies, races and sexual orientations".