Dame Shirley, former leader of Westminster LBC, was found guilty by the district auditor of 'wilful misconduct' between 1987 and 1989 in the 'homes for votes' scandal.
The commons Early Day Motion signed by 25 MPs condemned the Tory council's 'failure. . . to take any steps whatsoever to recover the£27m now owed to the people of Westminster'.
It states that Dame Shirley was made a Dame of the British Empire in recognition of her services to local government but, in the view of the court's judgement, 'This house considers that she is no longer a fit person to hold this honour'.
Former prime minister John Major was also condemned by the motion put down by Hendon MP Andrew Dismore.
It states, 'This House condems the fact, despite assurances previously given by the former Conservative prime minister that he would unreservedly condem Dame Shirley if she were found guilty in a court of law, no condemnation or criticism has yet been made by any Conservative member of this house.'