An investigation has been launched into controversial decisions made at a Sydney council’s extraordinary meeting this week.

The NSW Office of Local Government has been called in to look over the validity of the Canterbury City Council's meeting, which led to the sacking of Canterbury general manager Jim Montague.

The general manager denies he was sacked, despite a majority of councillors voting to terminate his $330,000-a-year position.

“The Office [of Local Government] has expressed to me serious concerns about the validity of the meeting process and the decisions that were reached,” Local Government minister Paul Toole told reporters after the meeting.

“The Office has written to the mayor expressing serious reservations and urging the council to seek immediate legal advice on the validity of the decisions.

“The Office is seeking an urgent meeting with the Council on this matter... and will continue to intervene as necessary to resolve the situation and bring stability back to the operations of the council.”

The embattled Canterbury general manager has been criticised for the alleged spending of $50,000 of ratepayers’ money over four years at an Enfield restaurant.

Mr Montague’s handling of a recruitment matter involving the director of planning position has been referred to the state’s corruption watchdog as well.

This week’s meeting appears to have seen its share of uproar, with police called to subdue shouting and hostilities between the public and a Greens councillor.

When the attendants were calmed and the meeting started again, remaining councillors voted to sack the general manager.

Cr Michael Hawatt (Liberal) told News Corp: “We moved the motions that the general manager ceases employment and Chris Watson starting immediately as the acting general manager.”

“The second motion is for the acting general manager to look into the contract of the director of planning.

“The staff all walked out, the council staff should not have left. This was all arranged and this is unacceptable.”

Mr Montague says the meeting had “no legal standing”.

“I remain in my position as general manager and it is ‘business as usual’ for Canterbury Council today,” Mr Montague said.

“After the meeting was officially closed some councillors remaining in the chamber purport to re-open proceedings and pass a motion to sack me from my position.

“Our understanding is that this ‘meeting’ has no legal standing and any actions or decisions by those councillors who remained are invalid.”