Act MP Deborah Coddington and Business Roundtable executive director, Roger Kerr, are playing down a newspaper report about an incident following an Act Party function in June.
A story in the Dominion Post said Coddington has written to Kerr asking him to stay away from her following an altercation.
The report said she consulted the Diplomatic Protection Squad over an incident after an Act function near parliament. Coddington and Kerr refused to comment to One News about the incident, but on Thursday afternoon they issued a joint statement saying the story is wildly overblown and is based on a minor incident involving a misunderstanding which has been settled.
The Roundtable and Kerr have been staunch backers of Act's message.
"This is not a big story," Act leader Rodney Hide said.
Roundtable board members spoken to by One News are standing by their executive director.
While the row may be settled, the timing is damaging - coming just days after Act's campaign manager was embroiled in the Auckland mayoral row.
Brian Nicolle quit the John Banks' team after admitting his role in distributing articles critical of rival Dick Hubbard. The police have been asked to investigate.
In the meantime Coddington and Kerr said they are looking forward to sharing a speaking platform at the Act conference in Christchurch on Saturday.