Volume 18, Issue 59 (4-2024)
MLJ 2024, 18(59): 775-791 |
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Ahmadipoor M A, Zarkalam S , Hasanzadeh H. The Governing Rules of Dissolution and Liquidation of Medical and Pharmaceutical Companies under the Legal Systems of Iran and England. MLJ 2024; 18 (59) :775-791
URL: http://ijmedicallaw.ir/article-1-1881-en.html
URL: http://ijmedicallaw.ir/article-1-1881-en.html
1- Department of Private Law, Faculty of Law, Tehren-e-Markazi Branch, Islamic Azad University, Tehran, Iran
Abstract:
Background and Aim: His medical and pharmaceutical sector, due to its high financial turnover, often attracts numerous companies to engage in its operations. However, not all companies active in this field are profitable. Many are dissolved over time for various reasons, raising the question of the governing rules on the dissolution and liquidation of medical and pharmaceutical companies. It is evident that England, as a prominent legal system, provides specific rules for the liquidation and dissolution of certain commercial companies, including those in the medical and pharmaceutical sector. One of the central issues in this context is the role of will (intent) in the liquidation of such companies, which has led to the classification of liquidation into two types: Voluntary (ordinary) and compulsory (special). A critical point in this regard is that when a company has multiple creditors, the legislator - in order to uphold the principle of equality among creditors - restricts the debtor’s autonomy. Therefore, liquidation holds significant importance in legal systems.
Method: The method adopted in this research is descriptive-analytical. Accordingly, credible library-based sources have been used to gather relevant information.
Ethical Considerations: In this research, ethical principles and academic integrity have been strictly observed.
Results: The method of liquidation is crucial in safeguarding the rights of creditors and medical/pharmaceutical companies. When there are numerous creditors and the debtor's assets are insufficient to cover the debts, problems arise in the process of debt collection. In such situations, each creditor may attempt to recover their claims before others, which may lead to the fragmentation of the company’s assets and a decrease in their collective value.
Conclusion: Iven the extensive scope of the medical and pharmaceutical sector, the collective interest of creditors demands that asset recovery be carried out in an orderly manner through an established bankruptcy framework. In principle, individuals can structure their own bankruptcy systems contractually; for example, a debtor may stipulate the consequences of non-payment in a loan agreement. However, drafting such contracts is often impractical due to potential changes in the debtor’s financial status and the number of creditors. Moreover, empirical evidence - such as the rarity of such contracts in practice and the existence of at least minimal statutory bankruptcy systems in nearly all countries - demonstrates that private solutions are not a viable alternative. Therefore, there is no doubt among governments about the necessity of providing a functional bankruptcy system, one that parties can resort to when they have not made special arrangements on their own.
Please cite this article as:
Ahmadipoor MA, Zarkalam S, Hasanzadeh H. The Governing Rules of Dissolution and Liquidation of Medical and Pharmaceutical Companies under the Legal Systems of Iran and England. Medical Law Journal. 2024; 18: e52
Method: The method adopted in this research is descriptive-analytical. Accordingly, credible library-based sources have been used to gather relevant information.
Ethical Considerations: In this research, ethical principles and academic integrity have been strictly observed.
Results: The method of liquidation is crucial in safeguarding the rights of creditors and medical/pharmaceutical companies. When there are numerous creditors and the debtor's assets are insufficient to cover the debts, problems arise in the process of debt collection. In such situations, each creditor may attempt to recover their claims before others, which may lead to the fragmentation of the company’s assets and a decrease in their collective value.
Conclusion: Iven the extensive scope of the medical and pharmaceutical sector, the collective interest of creditors demands that asset recovery be carried out in an orderly manner through an established bankruptcy framework. In principle, individuals can structure their own bankruptcy systems contractually; for example, a debtor may stipulate the consequences of non-payment in a loan agreement. However, drafting such contracts is often impractical due to potential changes in the debtor’s financial status and the number of creditors. Moreover, empirical evidence - such as the rarity of such contracts in practice and the existence of at least minimal statutory bankruptcy systems in nearly all countries - demonstrates that private solutions are not a viable alternative. Therefore, there is no doubt among governments about the necessity of providing a functional bankruptcy system, one that parties can resort to when they have not made special arrangements on their own.
Please cite this article as:
Ahmadipoor MA, Zarkalam S, Hasanzadeh H. The Governing Rules of Dissolution and Liquidation of Medical and Pharmaceutical Companies under the Legal Systems of Iran and England. Medical Law Journal. 2024; 18: e52
Keywords: Medical and Pharmaceutical Companies, Right to Health, Liquidation, Revocation of Operations, Dissolution
Type of Study: Original Article |
Received: 2024/09/20 | Accepted: 2024/11/24
Received: 2024/09/20 | Accepted: 2024/11/24
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