For these reasons, the courts have classified insurance contracts as the general category of membership contracts and have developed slightly more guarantees for the interpretation of insurance contracts (Baker 1994). Insurance contracts have long been regarded as paradigmatic liability contracts (see contracts: legal perspectives). To place a company in a voluntary agreement (CVA) of a company, there is a specific process that must be followed to assess the profitability of the agreement and put in place this process of turnaround the business. In 23 countries, the regulatory framework provided for a review of PRT prices. In Denmark and Ireland, revisions have also taken place at regular intervals, but they are based on a voluntary agreement between public payers and the pharmaceutical industry instead of legislation. Countries with revision or monitoring legislation had either fixed dates or fixed intervals between one month and five years. Of the 26 countries that followed prices and corrected prices, 18 did this exercise regularly, with the remainder on some occasions. The duration of the intervals ranged from 3 months to 5 years. In some cases, regular price controls or revisions are linked to certain medicines: in Norway, the prices of 250 substances representing about three quarters of the value market have been revised each year and, in Spain and Ireland, prices of non-patented medicines have been regularly updated once a year. Five countries (Belgium, Croatia, Denmark, Germany and Hungary) indicated that they did not have regular intervals for price changes. The competent authorities of two countries (Germany and Hungary) have not reviewed and monitored drug prices at all. Despite the existence of the law in Hungary, the details regulation has not yet been implemented at the time of the investigation. If three-quarters of CVA voters disagree, your company may face a voluntary liquidation.
Directors have a legal obligation to act properly and responsibly and to put the interests of their creditors first. Risks associated with winding up a business may include disqualification from the activity of director of other companies, as well as personal reputation as a director. In extreme cases, directors may be personally considered to be subject to assessment for erroneous payments to creditors. However, since a voluntary agreement of the company is in the interest of creditors, there is no investigation into the director`s conduct. Empirical studies on voluntary respect are relatively new and are gradually multiplying and fuelling theoretical discussions. Some documents, such as Arora and Cason (1995), examine the selection of companies that participate in voluntary, state-subsidized overcomponation programs, such as 33/50, sponsored by the U.S. Environmental Protection Agency. They find that companies that emit high toxic emissions are more likely to participate in this program. They see this result as a sign of hope, as these companies have the greatest potential to reduce emissions. Third, companies could play a strategic game with regulators.
According to Segerson and Miceli (1998), companies are making voluntary wastewater reductions to avoid the introduction of mandatory controls deemed more costly for a certain level of reduction. Wu and Babcock (1999) add the possibility for the regulator to offer a positive incentive for cooperation, such as providing technical expertise in pollution reduction.