A ROW engulfing Scotland's arts funding body over "flawed" cuts to theatre groups has prompted the resignations of two board members.

Creative Scotland announced it would hold an emergency meeting to find a way out of a crisis which has seen the departures of Ruth Wishart, a journalist and longstanding observer of the arts world, and Professor Maggie Kinloch, a respected figure in theatre and long time academic at the Royal Conservatoire of Scotland.

Insiders have compared the furore to that which gripped the arts funder in 2012, which led to the resignation of chief executive Andrew Dixon and creative director Venu Dhupa.

Then, one hundred leading artists – including John Byrne, Alasdair Gray, James Kelman, AL Kennedy, Liz Lochhead and Ian Rankin – signed an open letter criticising Creative Scotland's "ill-conceived decision-making; unclear language, lack of empathy and regard for Scottish culture".

In recent days, anger and dismay has gripped the art world after Creative Scotland unveiled its three-year funding deals, or Regularly Funded Organisations (RFO).

Companies left off the list of 116 RFOs included notable touring theatres Catherine Wheels and Visible Fictions, and disabled arts companies Birds of Paradise and Janice Parker Projects.

There has also been disquiet over cuts to lauded classical music groups Dunedin Consort and the Hebrides Ensemble as well as an apparent emphasis on funding strategic "umbrella" groups over companies that produce or present work.

The uproar includes a new petition signed by 2500 people supporting Visible Fictions, demanding a rethink.

It says: "The funding cuts have left the international children’s theatre sector devastated and bewildered as this decision leaves Scotland with no artist led funded children’s companies, which are considered some of the best in the world."

Ms Wishart, in a resignation blog, said she is dispirited that "Creative Scotland again finds itself a family at war with many of those it seeks to serve."

In response, the interim chair of Creative Scotland, Ben Thomson, said that the final decisions on funding were "signed off unanimously by the board."

He said: "These decisions were arrived at through a clear and careful process, involving Creative Scotland’s highly dedicated specialist staff and leadership team, with final decisions being signed off unanimously by the Board.

“As we have publicly stated, given the strength of feedback and reaction to this announcement, we are bringing forward the next Creative Scotland Board meeting to take stock and review the options available."

Ms Wishart noted that no funding body can please everyone and "there are winners there will always be losers, and where there are losers there will be disappointment and distress.

"Let us concede too that if bodies such as Creative Scotland were merely to fund the same cohort time after time, there would be little opportunity for innovation from new bodies, and a danger of complacency from serial beneficiaries."

However she said that the RFO decisions were made in too short a time and "such was the pace of some of these initiatives that, not infrequently, the board were asked to sign off against deadlines on some matters without adequate time to come to considered, properly reflective judgements."

She added: "It's not possible to go into the discussions at the relevant board meeting, not least since, whilst you serve on a board, you are bound by the equivalent of collective cabinet responsibility.... It also, however, causes you to reflect as to whether you can continue to back what you believe to be a flawed decision."

Ms Wishart concluded: "Hopefully a solution to the current difficulties can be sought and shaped...And a new permanent chair is due to be announced very shortly. I wish him or her, my friends and colleagues on the board and on the staff, every good wish for a future where, hopefully, fractured relationships can be reframed, refreshed, and rebuilt."

Fiona Hyslop, the culture secretary, said both board members had made "exceptional contributions" to Creative Scotland.

She added: "Through their deep knowledge of the arts and culture they have brought valuable expertise and perspective, and whilst it is with regret that I have accepted their resignations, I wish them the very best for the future.

"Being a Board member of public bodies involves constructive and robust scrutiny of strategic proposals, and collective decision-making.

"I understand the remaining Board members will meet tomorrow to review the feedback received by stakeholders about Creative Scotland’s RFO funding decisions, and I look forward to hearing the outcome of those discussions next week.”