The Accountant in Bankruptcy
If you are dealing with the insolvency of a Scottish company, you will probably come across the initials AiB.
AiB stands for Accountant in Bankruptcy. Despite the name, it is not your company’s accountant and it is not an insolvency firm.
It is a Scottish Government executive agency and Scotland’s insolvency service.
For Scottish company insolvency, one of its main roles is to record statutory information about company liquidations and receiverships on Scotland’s public Register of Insolvencies.
If your company enters a CVL, you normally do not need to become an expert in dealing with AiB yourself. Your insolvency practitioner deals with the formal insolvency process and the required submissions, while you provide the information and records they need.
What is the Accountant in Bankruptcy?
Accountant in Bankruptcy is an executive agency of the Scottish Government.
Its work covers a much wider range of Scottish insolvency and debt matters, including personal bankruptcy and the Debt Arrangement Scheme.
For company directors, the part that is normally relevant is Scottish corporate insolvency.
AiB is responsible for certain devolved parts of Scottish corporate insolvency, particularly:
- The Scottish process of company liquidation
- Receivership
- Recording statutory corporate insolvency information
- Maintaining the Register of Insolvencies
Why is AiB involved in my company’s liquidation?
Because your company is registered in Scotland.
AiB must be notified of Scottish company liquidations and receiverships and records the relevant statutory information.
That applies to both:
- Creditors’ Voluntary Liquidations; and
- Compulsory liquidations ordered by the Scottish courts
This is one of the reasons a Scottish liquidation involves more than simply filing documents at Companies House.
What is the Register of Insolvencies?
The Register of Insolvencies — or RoI — is a public online register maintained by AiB.
For companies, it contains information about Scottish businesses in liquidation or receivership.
That means somebody can search the register to check whether a Scottish company has entered one of those formal insolvency procedures.
The register is not restricted to insolvency professionals. It is publicly accessible.
Customers, suppliers, lenders and other interested parties can therefore potentially find the company’s insolvency record.
Is AiB the same as Companies House?
No.
They have different functions.
Companies House
Companies House maintains the public company register for UK companies and records company information including relevant insolvency filings.
Accountant in Bankruptcy
AiB performs Scottish insolvency functions and maintains the Scottish Register of Insolvencies.
In a Scottish liquidation, information may therefore need to be submitted to both organisations.
Your insolvency practitioner deals with the appropriate filing requirements as part of administering the liquidation.
Is AiB the same as the Insolvency Service?
No.
This is another area that can be confusing when reading UK insolvency websites.
Scottish corporate insolvency is partly devolved and partly reserved.
AiB deals with devolved Scottish matters including the process of company liquidation and receivership and maintenance of the Scottish Register of Insolvencies.
The UK Insolvency Service is responsible for reserved areas including matters such as:
- Company Voluntary Arrangements
- Administration
- Certain legal effects of liquidation
- Regulation of insolvency practitioners
As a director, you do not normally need to work out which government body is responsible for each part of insolvency law. Your adviser should make sure the correct Scottish procedure is followed.
Does AiB liquidate my company?
Not in an ordinary Creditors’ Voluntary Liquidation.
You instruct a licensed insolvency practitioner to advise on and arrange the CVL.
Once appointed, the liquidator is responsible for administering the liquidation, including:
- Taking control of company assets
- Dealing with creditors
- Realising company property
- Investigating the company’s affairs
- Making the required insolvency filings and notifications
- Distributing available funds in accordance with the statutory rules
AiB’s involvement does not mean a government official replaces the insolvency practitioner you have instructed.
Does AiB appoint the liquidator?
Not in the normal Scottish CVL process.
The directors and shareholders begin the voluntary liquidation process and creditors participate in the appointment of the liquidator through the statutory Scottish procedure.
Compulsory liquidation is different.
Where a Scottish court makes a winding-up order, an interim liquidator is appointed under the compulsory-liquidation procedure.
That is a court insolvency process rather than AiB simply choosing who will liquidate the company.
Do I have to contact AiB myself when putting my company into CVL?
Normally, the insolvency practitioner arranging and administering the liquidation deals with the formal insolvency submissions.
Your role is primarily to give the practitioner the information needed to deal with the company properly.
That can include:
- Accounting records
- Bank information
- Creditor details
- Employee information
- Asset information
- Contracts and leases
- Details of recent transactions
- Information needed for the statement of affairs
There is therefore no need to delay taking insolvency advice because you are unsure which AiB forms need to be completed.
That is part of the insolvency practitioner’s job.
Will my company’s liquidation appear publicly?
Yes.
Formal company liquidation is a public process.
For a Scottish company, information may appear through several public sources, including:
- The Accountant in Bankruptcy’s Register of Insolvencies
- Companies House
- The Edinburgh Gazette
- Scottish court records where court proceedings are involved
This is normal and does not mean that anything unusual has happened in the case.
If employees, customers or important suppliers need to know about the company’s closure, it is usually better to plan that communication rather than rely on them discovering it through a public record.
Can I search the Register of Insolvencies myself?
Yes.
The Register of Insolvencies is available online and can be searched by members of the public.
There is a specific company search for Scottish businesses in:
- Liquidation; or
- Receivership
The register can therefore be useful if you want to check the formal insolvency status of a Scottish company.
Companies House and the Gazette may also contain relevant information, so the Register of Insolvencies is not the only public source.
Do creditors make their claims to AiB?
Normally, creditors deal with the liquidator administering the company rather than simply sending their claim to AiB.
The liquidator deals with creditor claims, voting rights where applicable and any distributions available from the liquidation.
So if one of your suppliers asks, “Who do I send my claim to?”, the practical answer will usually be the insolvency practitioner dealing with the liquidation.
Creditors will receive the appropriate information about how to lodge their claims as part of the insolvency process.
Does AiB investigate directors?
Do not confuse AiB’s corporate insolvency role with the separate director-conduct process.
In an insolvent liquidation, the insolvency office-holder reviews the company’s affairs and director conduct and submits the required conduct report.
Potential director disqualification matters are dealt with through the wider UK director-conduct regime rather than AiB simply deciding whether a company director should be disqualified.
Again, the practical point is that several organisations can have different roles within the same Scottish insolvency.
Why does AiB matter when choosing an insolvency adviser?
You should not need to manage the relationship with AiB yourself.
But the fact that AiB is part of the Scottish liquidation process is one reason your adviser needs to understand Scottish corporate insolvency properly.
A Scottish liquidation can involve:
- Scottish insolvency rules
- AiB notifications and records
- Companies House filings
- Edinburgh Gazette notices
- Creditors’ decision procedure or deemed consent in a CVL
- Scottish court procedures where relevant
That does not make the process something directors should be frightened of.
It simply means it should be handled by people familiar with the system.
Accountant in Bankruptcy FAQs
What does AiB stand for?
AiB stands for Accountant in Bankruptcy, Scotland’s insolvency service and an executive agency of the Scottish Government.
Is AiB my insolvency practitioner?
No. In a normal company CVL you instruct a licensed insolvency practitioner who becomes responsible for administering the liquidation.
Why is my company listed on AiB?
AiB maintains Scotland’s Register of Insolvencies and records statutory information about Scottish company liquidations and receiverships.
Is the Register of Insolvencies public?
Yes. It is a publicly accessible online register.
Does AiB replace Companies House?
No. They have different roles and a Scottish liquidation can require information to be filed or recorded with both organisations.
Do I personally have to complete AiB filings?
In a CVL, the insolvency practitioner normally handles the formal insolvency submissions. Directors provide the information and co-operation needed to complete the process.
Does AiB regulate insolvency practitioners?
The regulation of insolvency practitioners is a reserved matter rather than one of AiB’s devolved corporate insolvency functions.
Does every Scottish corporate insolvency appear on the AiB company register?
AiB’s corporate Register of Insolvencies records Scottish company liquidations and receiverships. Other procedures such as administration and CVAs sit within the reserved corporate insolvency framework and have their own filing and publication requirements.
Do I need to contact AiB before liquidating my Scottish company?
You do not need to work out the filing process before asking for insolvency advice.
If your company cannot pay its debts, the first step is to establish whether the business can realistically recover and, if not, which insolvency procedure is appropriate.
If a Scottish CVL is the right answer, we can explain the timetable and deal with the formal Scottish process, including the appropriate AiB, Companies House and Gazette requirements.
Your job is to give us a clear picture of the company. The procedural filings are our job.