Investigations are under way after a member of a brass band wore a golliwog-style mask during a competition performance.
Stan Lippeatt has apologised and stepped down as chairman of the Association of Brass Band Adjudicators (ABBA) after the "misjudged" act at the Bolsover Festival of Brass in Derbyshire on Sunday.
Mr Lippeatt plays flugelhorn with Hatfield Colliery Band, based in South Yorkshire, and was taking part in the contest with the band.
A spokesman for Bolsover Council said it is investigating the incident.
"We don't condone this type of behaviour and we won't tolerate it. But we need to conduct an investigation before we can make any further decisions," he said.
A spokesman for ABBA confirmed that Mr Lippeatt agreed to stand down as chairman until an internal investigation is complete.
"The matter is being investigated and that's as far as it goes at the moment," he said.
Mr Lippeatt released a statement apologising for the incident.
He described it as a "play on words" which band members said took place during a performance of the musical number Hello Dolly.
"I can assure everyone that I did not set out to cause any offence. It was only a play on words with an added prop. What came across was not what was intended and was totally misjudged," he said.
"I apologise for any offence that may have been caused at the contest and to the contest organisers who have been wonderful supporters of the banding movement."
Members of Hatfield Colliery Band described Mr Lippeatt as a "really nice guy". They said his role during the performance was to mishear what was said as part of the entertainment, such as the name of the adjudicator and the name of the song.
Graham O'Connor, the band's musical director, also offered his apologies for any offence caused.
In a statement, he said: "I apologise fully to all concerned for what was the totally misjudged inclusion of the item performed in such a way in our programme. We did not set out to offend anyone with its inclusion but can fully appreciate that the way in which it was performed may have done so."