CITIZENS Advice Scotland could shut down unless its leading members vote for a package of governance reforms.

Senior figures at CAS have been warned that Government funding will be withdrawn if they vote against the emergency plan next month. Labour MSP Jackie Baillie said: “This is D-day.”

CAS is the umbrella body for the 61 member bureaux that provide services to over 300,000 people on consumer, finance and welfare services.

CAS is also dependent on public money: the UK Government provided around £3.4m last year; and the Scottish Government made £2.6m available in 2014/15.

However, the charity has been in crisis for over twelve months. As revealed by the Sunday Herald, CAS chief executive Margaret Lynch was fired over issues relating to her expenses.

External accountants found she had made cash withdrawals from a CAS credit card, but she is taking her case to an employment tribunal.

The two Governments also had wider concerns about governance, and auditors Deloitte were brought in to conduct a review. The damning report included a series of recommendations designed to clean up CAS.

Central to the plan was taking control of the CAS board away from representatives of individual bureax and giving power to external trustees.

Under the proposals, trustees from outside CAS and an independent chair would command a majority of the votes on the board.

On 23 November, members will be asked to vote on these amendments.

However, documents leaked to the Sunday Herald reveal how serious the vote is for the future of CAS.

In a letter to members last week, acting CAS chair Agnes Robson wrote: “In the absence of a robust governance structure being implemented at CAS, there is a very real and substantial danger that funding for CAS will be withdrawn.”

A briefing that was also sent to members went further: “If the bureaux vote not to approve the amendments to the articles, the UK and Scottish governments will cease to provide funding to CAS beyond 31 March 2017.”

It added: “Without this funding, CAS will be unable to operate and services and support to bureaux will cease.”

Baillie said: "There have been questions raised for some time about the governance arrangements of CAS...It now looks like the patience of both the UK and Scottish governments has run out.

"Many people, myself included, have enormous respect for the Citizens Advice bureaux operating in our communities. They do a tremendous job. It is now time for the centre to get its act together and support the front line."

A CAS spokesman said: "In order to continue to provide funding, the UK and Scottish governments require CAS to have a robust governance structure in place which provides assurances over the use of public funds.

"A series of amendments to our governance structure are proposed, which would bring CAS into line with...recognised best practice for...charity in receipt of public funds.

"It is important that there is no detrimental impact on the CAB network and the valued service provided to clients across Scotland. CAS has provided members with a briefing pack on options going forward in order to ensure that each member CAB can make the most informed decision on how they wish to vote."