The principle of conservation of insolvent companies and MIPYMES in Cuba

Abstract

Introduction: This paper analyzes the need for a bankruptcy regime in Cuba, focused on protecting micro, small, and medium-sized enterprises (MSMEs) facing insolvency. The incorporation of MSMEs as limited liability companies into the Cuban economy, without an adequate legal framework to manage their insolvency, reveals a legal gap that this study seeks to address. Materials and methods: Theoretical methods such as analysis-synthesis and hermeneutic-dialectics were used to examine the epistemological foundations of insolvency and bankruptcy law, reviewing national and international legislative sources, as well as specialized literature. Results: It was identified that MSMEs are highly vulnerable to liquidity crises and that the Cuban legal system lacks mechanisms to counteract insolvency, both for state and non-state actors. Bankruptcy proceedings are presented as an essential collective execution process for the orderly satisfaction of creditors, incorporating the principle of preserving the company as a complementary objective. Discussion: The importance of balancing the interests of creditors with the debtor's recovery is highlighted, prioritizing the preservation of viable businesses. The absence of a bankruptcy procedure in Cuba limits effective judicial protection and hinders legal transactions. Conclusions: It is concluded that Cuba requires the codification of a specific bankruptcy regime for MSMEs and other forms of non-state management, guaranteeing creditors' expectations of repayment and promoting business preservation, thus contributing to the modernization of the economic legal framework.