The reaction of oxirane with carbonate using quarternary ammonium salts as catalyst has been studied. Curing is caused by the transesterification reaction of the oxirane cycle with the carbonate group that proceeds by an "insertion" mechanism in the stoichiometric system. The ratio of the reactants is two oxirane groups to one carbonate group. In the nonstoichiometric system, the epoxide content is more than the stoichiometric quantity required. A cyclization reaction is followed by the transesterification reaction. To identify the finished products, a model reaction was proposed using diphenyl carbonate and phenyl glycidyl ether which results in the formation of 4-phenoxymethyl-1,3-dioxolane-2-one (PMD). The mechanism of forming the cyclic structure is assumed to proceed through the chain scission of the network in which the molecular chain crosslinked with carbonate group by a transesterification reaction.