The forum was held before a two and a-half hour public-excluded council meeting called to discuss legal proceedings as a result of the airport deal.
About 20 people turned up to yesterday's meeting, some expecting the opportunity to speak during the public forum, which was included in the agenda.
However, councillors and members of the public alike appeared shocked to hear Mayor Clive Geddes announce it was "not appropriate anyone ... should address the matter of the issue of shares in Queenstown Airport", because the matter was subjudice.
Cr Cath Gilmour called the announcement "a whammy", while Crs Lex Perkins and Vanessa van Uden said it had been "dropped" on them.
Cr van Uden said the council had put a public forum on the agenda and it was appropriate to ask for legal advice on the matter.
"It's been dropped on us right now ... there was an opportunity to discuss this before ... however, given that we have lawyers present, can we not ask them if we can set aside standing orders so that those people who have made an effort to be here today [can speak] ...
"There is a clear expectation to be able to speak.
"We haven't provided that opportunity previously."
After discussing the matter and seeking legal advice from the two Simpson Grierson lawyers present, the council set aside standing orders, enabling members of the public to address the council Former mayor Warren Cooper told the council one of the reasons Queenstown Airport had progressed - particularly in the past 10 years - was because the council put together "a good board".
The first responsibility of "private sector people" was dealing with shareholders - which had not happened in Queenstown.
"and that's a local travesty".
"Your worship, you have overcome this attempt to gag councillors.
"I hope that when you have finished today you have made it very clear that the legal advice might be the right advice, but your democratic advice is to let councillors have a say," he said.
Former councillor and former QAC board member Philip Wilson said it was not appropriate for the council to take "independent legal advice from the same firm that advised QAC".
Chamber of Commerce chairman Alastair Porter said the chamber was "very disappointed" it had taken so long to hold the meeting.
The council should, "at the very least" remove the part of QAC's constitution which had allowed it to create and sell the 24.99% shareholding to Auckland Airport.
After yesterday's meeting, council chief executive Debra Lawson issued a statement saying the council would defend proceedings regarding legal action in connection with the issuing of shares.
It had independently engaged Simpson Grierson to act on its behalf.
Mr Porter said yesterday's extraordinary council meeting highlighted the need for a "100% improvement" in transparency and communication between the council and ratepayers.
One of the Simpson Grierson lawyers present, Duncan Laing, warned public statements made which could "predetermine the outcome of the court process" on the airport deal could be regarded as contempt.
However, he stressed he was only present at yesterday's meeting to advise councillors, not members of the public.
After the meeting, Mr Porter reiterated to the ODT he was "appalled" the council had taken so long to hold the meeting.
"... . and that they waited until there were legal proceedings so they could then seek to gag the public.
"Although they didn't totally succeed in doing that, they clearly undertook to intimidate the large audience that was there that wanted to have a say.
"Whatever the law is, clearly these solicitors didn't understand that good public process is all about clear communications.
"I don't appreciate going to a public meeting to find two expensive lawyers from out of town being paid for by ratepayers telling ratepayers they can't communicate with their council."
Mr Geddes told the ODT Simpson Grierson was a nationwide law firm with long-standing expertise in local government matters, which was why the council had elected to engage them.
