The entire Barkly Regional Council has been dismissed following an investigation into bullying, inadequate oversight, and potential breaches of the law.
The Morley report, a 616-page document, found that the elected members did not understand their roles, failed to seek information before making decisions, and did not manage conflicts of interest properly.
The report criticised former chief executive, Emma Bradbury, for acting with a conflict of interest and manipulating elected members, allegations she denies.
The council’s former mayor, Jeff McLaughlin, was also implicated.
In announcing the dismissal, Local Government Minister Chansey Paech also said criminal charges remain an option.