Photo: The Canadian Press

Conservative MP's pay respects to Andrew Scheer following the announcement he will step down as leader.

Signs began to emerge Friday that the coming race to replace outgoing Conservative Leader Andrew Scheer will be an acid test for whether social conservatives have a place in the Conservative Party of Canada.

But difficult as that discussion could be for the party, an even nastier, more personal fight is threatening to unravel the party's governance structure. At the centre of it is executive director Dustin Van Vugt, whose status as the party's chief operating officer was in limbo Friday night.

For weeks since the October election, Scheer has been hammered by progressives in the party who say his unclear positions on social issues like abortion and his refusal to fully stand up for LGBTQ rights contributed heavily to the party's defeat in October.

Many demanded his resignation, insisting the Conservatives will not win in Ontario and Quebec if they can't put up a leader who will march comfortably, and be welcome, in Pride parades.

But Scheer's reluctance, and many times refusal, to explain his position on abortion or why he won't attend events to stand up for LGBTQ rights, was not what finally pushed him out the door. It was instead, an agreement between him and Van Vugt to have the party pay to send Scheer's kids to a private Ottawa Catholic school.

It was less than 24 hours from when information about the deal was slipped to some media outlets that Scheer informed the Conservative caucus he was going to step down.

Van Vugt confirmed in a statement Thursday that the payments had been approved by the party.

But according to some Conservatives, who were not authorized to speak publicly about internal matters, the news was a surprise to directors of the Conservative Fund, a separate entity that raises money for the party. Its directors include former prime minister Stephen Harper, former senator Irving Gerstein, and current senator Linda Frum, according to public listings.

The Fund's directors held a conference call Friday, after which an email was circulated to employees at Ottawa headquarters saying Van Vugt was no longer employed there.

But under the party's constitution, the Conservative Fund doesn't have the authority to fire the executive director.

The constitution says the leader, who is still Andrew Scheer, gets to hire that person, upon approval of the national council, a body elected by the party membership to represent every province. It's not clear who has the authority to dismiss him.

The Fund, however, holds the purse strings and can decide simply to stop supplying the money to pay him.