Councillors in Hunstanton will review their membership of the resort’s Chamber of Trade, amid calls for them to pull out.
The town council will be in the group for another year, after a vote at last Friday’s meeting.
But that came amid suggestions the position should be reviewed in 12 months’ time and calls for the authority to quit the group altogether.
Richard Bird, who asked for the issue to be discussed and called for the council to resign, said other groups were more representative of the town’s business community.
And he said the council’s membership “gave credence to a failing organisation.”
But Christine Earnshaw said it would be a “huge mistake” to pull out.
She said the chamber had recruited many new and returning members in recent months and there would be further changes to the group.
She said: “The way to help is from within. They know they’ve got problems.”
But Andrew Murray questioned the idea the group was growing, saying only 17 people had paid to be members.
He said: “I don’t think it’s flourishing at all.”
But Mrs Earnshaw said Mr Murray remained chairman of the Civic Society during his mayoral year, as no-one could be found to take the role.
She said: “We know it’s very difficult to find people to lead organisations and I do think it’s very unfair.”