Calling all Political Scholars: Can the Liberal Party go Bankrupt?
August 28, 2008 · By Shane Edwards
And secondly, what happens if they do?
From what I understand, the LPC is deep in debt. If an election is called, they will get a bit of cash from Elections Canada, but if they want to even come close to standing up to what the CPC can spend, they will have to run up more debt. Given that they are in no position to fundraise or improve their optics, it is concievable that they could go bankrupt. What would happen?
Would they be forced to dissolve their party?
Could they just re-form under another name?
Would their MPs be considered independents?
Would the parliament have to be dissolved so that all those ridings represented by a Liberal could have elections?
Just wondering.
I thought they were bankrupt…oh, you mean financially.
Shane,
Yes they can go bankrupt, although the best example of what would transpire would have to be the Sask Party in Saskatchewan. Their issue was criminally-inclined corruption, but the aftermath is very much what any political entity would do if it was forced to fold:
The MPs of that party would sit in the House under a different caucus name (eg. the Canadian Liberal caucus — think Chuck Strahl’s Democratic Representative Caucus or Joe Clark’s insistence to sit out the end of 2003 and early 2004 as a Progressive Conservative MP). It would be very quick and easy to start up another political party too, especially with 100 MPs joining that party.
I should also note though that the party leadership, including perhaps the Leader of the Liberal Party, might be somewhat responsible when the creditors come knocking!
Who would dare drive them into bankruptcy .. surely not the big banks holding the largest loans .. they would just write of those loans as ‘uncollectable’ … so obvious.