On 3 September 2008, the Scottish Government announced:
Creative Scotland will begin life as a company limited by guarantee, allowing a new board of directors and chief executive to take forward the final phase of transition. The arrangements for establishing Creative Scotland will also undergo further Parliamentary scrutiny through the Public Services Reform Bill, enshrining the arms' length principle in legislation. It is expected that the new board of directors and chief executive will be in place by April 2009, with the organisation maturing into a statutory body by February 2010.This reads as an attempt to bypass full democratic scrutiny of Creative Scotland by smuggling it into another, equally controversial, Bill. The proposal to create a private company to manage culture in Scotland has a local precedent in Culture and Sport Glasgow, which is overseen by market-friendly councillors and businesspeople.