Voluntary Agreement Meaning In English

In the context of the European Union, the term “voluntary agreement” generally refers to an agreement that is not the result of a political decision-making process exclusively within the official EU institutions (European Commission, Council of the European Union, European Parliament – i.e. the so-called Community method), but mainly the result of negotiations between social partner organisations legitimised by European legislation, to enter into such agreements. The main features of voluntary agreements are that they are not enshrined in EU legislation. Under a voluntary agreement, directors are not personally liable for the company`s debt unless they have given a personal guarantee. Even if a director has given a guarantee, a CVA means that a director is only liable if the company is unable to pay and if there is a source of income withheld due to the continuation of the activity. Directors have a legal obligation to act properly and responsibly and to put the interests of their creditors first. The risks associated with the liquidation of a company may include the exclusion from the activity of director of other companies as well as the personal reputation of director. In extreme cases, managers may be held personally liable for contributing to creditors` defaults. However, since a voluntary agreement by the company is in the best interests of creditors, there is no investigation into the director`s conduct.

[2] See also: Collective agreements as an enforcement mechanism for EU law; European social dialogue and the implementation of agreements; joint opinions; Stress at work. .