University leaders have denied that concerns about the financial implications of a major governance shake-up are a "smokescreen" to avoid more transparency.

Legislation making its way through Holyrood will bring about major changes in the sector, including requiring universities to appoint a chair in line with a process set out by ministers.

Universities Scotland, which represents Scotland's 19 higher education institutions, is concerned about the financial impact of additional controls handed to ministers through the Higher Education (Governance) Scotland Bill.

The body fears universities could be reclassified as public-sector bodies by the Office for National Statistics (ONS), restricting their ability to borrow funds and risking their charitable status.

Giving evidence to the Scottish Parliament's Finance Committee, director Alastair Sim questioned the "quality of thinking" that had gone into the Bill and said universities could be "severely hampered" by what he described as the "unintended impacts" of its provisions.

He told MSPs: "I just personally don't feel confident that this Bill has been considered properly in the context of what really are quite heightened risks."

SNP MSP John Mason asked: "Are your concerns about the finances real concerns or are they a smokescreen because the universities do not want democracy and transparency?"

Mr Sim responded: "The problems that we have raised with this committee are very real concerns."

Professor Anton Muscatelli, principal and vice-chancellor of the University of Glasgow, added: "I can assure you personally I have financial concerns.

"I can recognise that different stakeholders have different positions on this, and that's why the Bill has been published and has been brought forward.

"I suspect on this issue of the finances and ONS reclassification there would actually be quite a lot of agreement across the sector."

If passed, the Bill would also ensure that staff, students and trade unions are represented on university governing bodies.

Garry Coutts, chair of court at the University of the Highlands and Islands, told the committee he believed the legislation was a response to pressure from staff and students for better representation on courts.

He said: "I believe that we can achieve the intentions of government around the representation on courts without the need for legislation which carries a huge amount of risk which could be very detrimental to the sector."

Stephen White, strategic policy lead at the Scottish Government, told MSPs there had been a "thorough consideration of the risk".

He added: "Nothing in this Bill requires higher education institutions to ask ministers for permission for anything. It's not about ministerial control."