Hunter Liberal members say the sacking of the party's state director over the council nomination fiasco won't go far enough to fix problems within the party.
Liberal state president Don Harwin confirmed Richard Shields was fired as the Liberal state director in a unanimous decision by the state executive.
"The state director was given the opportunity to explain the circumstances to the state executive," Mr Harwin said.
"This failure to meet such a fundamental responsibility has rendered his position untenable.
"As a result, the state executive has unanimously resolved to terminate the state director's employment with immediate effect."
But Hunter councillors who missed out on re-contesting their seats after the party failed to register them before the deadline say more needs to be done.
"This is a systemic problem and we will not have a resolution until we have full constitutional reform of the NSW division of the Liberal party," Cessnock councillor Paul Dunn said.
"While I think he did need to accept responsibility and resign, it doesn't fix the problem," Maitland councillor Ben Mitchell said.
"His refusal to answer questions by the state executive (who subsequently fired him), and the party leader further rubs salt into the wound."
All four Cessnock Liberal councillors will not run at the September 14 election, while two Liberal candidates in Maitland and one in Newcastle also were not registered.
NSW Liberal leader Mark Speakman had called on Mr Shields to resign after the news broke on Wednesday. The Woollahra mayor resisted until the state executive met on Wednesday night.
