Councillor Mark Gould asked for a clarification as to why the item 'Recommendation 8: Council representation on other entities' was confidential when in previous meetings it was always on the open agenda.
Mrs Chadwick said it was a ruling of hers.
"It is an item that council officers have recommended be in confidentiality, I have agreed following our meeting that we need full and frank discussion and that will be held in confidence. As the chair of these proceedings that is my ruling."
Councillor Peter Bentley said the general public had a right to know what was going on in this council "because they voted for us".
Members of the Rotorua District Residents and Ratepayers society yelled "shame on you" after being asked to leave the council chamber for the confidential section.
Society secretary Reynold Macpherson, who is representing the group in the mayoral race next year, later told the Rotorua Daily Post members were "pretty angry" following the meeting.
"There has been outrage that Glenys, one of the most respected members in the community, has been treated like this."
Mrs Chadwick could not yet be reached to respond.