Political pressure is mounting on the university after Ms Adler and five board members announced on Wednesday they had resigned from the century-old Melbourne University Publishing following its decision to stop publishing books for general readership.

At the Victorian Premier’s Literary Awards on Thursday night, Creative Industries Minister Martin Foley said he feared the university’s changes would lead to fewer independent and vibrant voices.

“When this reorganisation decision is made by our oldest and most prestigious university, it can only be seen as disturbing,” he said. “I use the chance I have tonight to call upon the university of Melbourne to reconsider and reverse its decision.”

Mr Foley said there was no reason the university couldn’t publish rigorous and quality academic works while also giving voice to controversial topics. “The university can surely walk and chew gum at the one time,” he said.

Some university insiders believe Ms Adler's decision to publish ABC reporter Louise Milligan's controversial award-winning book about Cardinal George Pell was a catalyst for the overhaul.

But others say the changes were due to the publisher’s financial performance and concerns some academics’ works were being overlooked in favour of more commercial texts backed by Ms Adler.

Former New South Wales premier and foreign minister Bob Carr and former human rights commissioner Gillian Triggs, both of whom have been published by Ms Adler, were among those who quit the board in disgust.

Well-known publisher Hilary McPhee, an MUP author and former board member, said Australian publishers needed to “publish high and low and scholarly books that people want to read, not just academic books. MUP have done a great mix for a long time”.

She said that some academics were irritated by some books Ms Adler chose to publish instead of their own texts. But the books Ms Adler championed sold well, she said. “It absolutely infuriates academics, who sell 750 copies if they are lucky.”

Ms Adler is one of Australian publishing’s most prominent and controversial figures, and has close friendships with many of Melbourne’s most powerful cultural figures.

Often seen as a catalyst for change, the 64-year-old was editor of Australian Book Review, publisher at Reed Books, The Age’s arts editor and deputy director at Victorian College of the Arts before joining MUP in 2003.

There her ambitious vision elevated the publisher’s profile and sales - but some books raised questions about judgment.

Ms Adler was the chairwoman of the Methodist Ladies' College board when it sacked principal Rosa Storelli in 2012, triggering outrage among the school community.

The changes at the prestigious university – one of the city’s biggest exporters of services – were unveiled following a review initiated by the university council.

Under the direction of new vice-chancellor Duncan Maskell, the publisher will now limit its focus to academic texts and install a new editorial advisory board to determine what is published.

This will mean the political memoirs MUP is well-known for, which include works by Mark Latham, Tony Abbott, Gareth Evans and Sam Dastyari, would no longer be published.

Under Ms Adler’s watch, MUP went from a loss maker – in 2005, soon after she started at the publisher, it had an income of $4 million and made a loss of $750,000 – to turning a small profit or breaking even.

Last financial year, it made a modest profit of $286,000.

But the publisher receives about $1.25 million in subsidies from the university every year.

Outgoing chairman Laurie Muller said he was concerned about the editorial independence of the publisher under the new arrangements.

“Independent publishing supports freedom of expression and if you restrict that you indirectly restrict freedom of speech,” he said.

Mr Muller said the publisher had consistently performed above expectations.

The changes, he said, had made it impossible for Ms Adler and the board to continue in their roles.

Some authors and editors who had worked with Ms Adler, however, said that the high level of university subsidies showed she had not run such a successful business.

One who asked not to be named described Ms Adler as one of the nation’s best connected intellectuals who was “also a law unto herself, even if she is a national treasure”. They said the reforms being asked of Ms Adler at MUP were “not unreasonable”.

The publisher, founded in 1922, runs a lean operation, with just 14 staff. The university on Wednesday - following the resignation announcement of Ms Adler and most of her board - issued a statement saying the publisher would “refocus on being a high quality scholarly press”.

Former foreign minister Gareth Evans said Ms Adler has been an “outstanding, adventurous and creative publisher”.

“I think it is very important that MUP continue to publish high quality works on current affairs and issues,” he said.

Australian Council of Trade Unions secretary Sally McManus, whose book On Fairness will be published by MUP next week, said “restriction on the ability of a publisher to publish without fear or favour is bad for all Australians and for our country.”