A suspended councillor will be able to reapply for party membership in the new year.
Antony Baker was suspended by the Conservatives in May, just days after he was elected to Salvington ward in the Worthing Borough Council elections.
The announcement was made after the Herald asked him a series of questions about official documents, which appeared to show county court judgments (CCJs) against him and also against the watersports business he founded - Baker Academy – on Worthing seafront.
At a private meeting of the West Worthing Conservative Association on Friday, Mr Baker’s suspension was extended until the new year.
He will then be able to reapply for party membership.
Branch chairman Tom Wye told the Herald on Tuesday the association was not making an official statement – but confirmed the outcome.
Mr Baker also made no comment in reaction to the branch’s decision.
The decision means Mr Baker is currently sitting as an Independent councillor.
He won the Salvington seat with 946 votes, ahead of David Smith, of UKIP, on 622 votes.