The Bolivian government proposed a bill that would allow workers to take over the private companies where they work if they go bankrupt, and convert them into “social companies” in order to stimulate production and address unemployment, Pagina Siete reported Tuesday.
The proposal, titled the Creation of Social Companies Bill, was handed to the Bolivian National Assembly for debate.
The measure applies in the cases of bankruptcy, but also liquidation or unjustified abandonment, in accordance with the Commercial Code, but only if the company is part of the private sector.
In that case, the workers who were still active employees and who are willing to take it over can present their request to a judge. They may be required to invest in the company's social capital in order to keep it going.
If the company's debts exceed its available capital, then they will be paid with the employer's personal resources, in accordance with Article 1335 of the Civil Code.
Historically one of South America's poorest and most unstable countries, Bolivia has enjoyed economic growth and political stability under President Evo Morales, the country’s first Indigenous leader. Its economy has also tripled in size, while investment in social and productive projects have doubled in 11 years.