The chair of Waikato-Tainui's parliament Te Kauhanganui is standing by a vote which ousted Tukoroirangi Morgan.
Mr Morgan was also the chair of Te Arataura, the board which manages the iwi's assets. He lost both positions after the vote by more than 60 marae representatives at Hopuhopu near Ngaruawahia Saturday.
It comes after the chair of the parliament, Tania Martin released a report last year alleging excessive spending by members of Te Arataura.
Mr Morgan is said to have threatened legal action after the vote.
He did not return calls, but a spokesperson for Mrs Martin says he will have to use his own money to go to court.
The spokesperson says tribal funds will be used by the parliament to defend it.
She says Mr Morgan will be quickly replaced on the parliament and the board.