Nigeria’s Leading Hospital Goes Insolvent Over Shareholders’ Disagreement

Nigeria’s Leading Hospital Goes Insolvent

OpenLife Nigeria reports a Nigerian medical doctor, Omololu Oshinowo who is also a founding partner, Director and Shareholder of The Premier Medical Center, located at 7 Ogalade close,off Ologun Agbaje Street, Victoria Island, Lagos, has filed a petition before a federal high court, urging the court to wind up the company on the ground of being insolvent.
In a petition accompanied with the sworn affidavit of the petitioner filed before the court by a Lagos lawyer, Barrister ‘Wale Adesokan SAN, the Petitioner served the Premier Specialist Medical Centre, since inception until March 18, 2022, as a Medical Doctor and Executive Director until his retirement on the aforesaid March 18, 2022 upon attaining the age of 70 years.
The petitioner was obliged to retire as Executive Director and Medical Director on March 18, 2022 based on the Shareholders Agreement between the parties.
By letter of March 2, 2022, the petitioner requested the respondent to follow precedent established in May 2018 in the case of Dr. Olawale Ogunlaja, another founding partner by initiating discussions on when his retirement package and arrears of his salaries and allowances would be paid.
The respondent replied by letter of March 11, 2022, and by giving the petitioner three options to choose from in respect of his disengagement package.
The petitioner responded by his letter of March 17, 2022 choosing option 3, with a total payment of N108 million with the following payment plan initial payment of N10 Million by or before the end of April 2022 (which is under 10% of his remuneration), while the rest is paid at a specific date of every month (for example, 15th day of every month) from June 2022 at the rate of N3 Million per month until the total sum is liquidated.
The respondent acknowledged the petitioner’s choice of Option 3 vide its letter of May 4, 2022 but failed to indicate the date of payment, a fact which the Petitioner pointed out vide his letter of May 5, 2022.
The Respondent thereafter started asking for time to make an acceptable payment plan proposal, but the parties were unable to reach an agreement as the correspondences between the parties revealed.
In spite of the clear declaration of his intention to seek his remedies elsewhere at the end of July 2022 as a result of the inability of the petitioner to present an acceptable payment plan, the Respondent only managed to pay N6,000,000.00 (Six Million Naira) of its indebtedness of N108, 000,000.00 (One Hundred and Eight Million) to the Petitioner leaving outstanding the sum of N102,000,000.00 (One Hundred and Two Million Naira).
The aforesaid payment of N6,000,000 by the respondent to the petitioner was made in two installments of N3,500,000.00
The Respondent is insolvent and unable to pay its debts and this is manifest in various letters written to the respondent and the consistent attitude of the respondent in non-payment of its N102,000,000.00 debt.
In the circumstances, it is just and equitable that the respondent be wound up.
Your Petitioner therefore prays as follows: That the respondent, the Premier Specialist Medical Centre Limited be wound up by the Court in accordance with the provisions of the Companies and Allied Matters Act.
That this court do appoint liquidator to supervise the winding up process and to pay the Petitioner N102 million being the retirement entitlement and salaries and allowances due to the Petitioner with interests at 25% per annum from March 13, 2022 until full payment as may be entitled by the petitioners’ claims.
That such order may be made in the circumstances as the Court shall deem fit and just.
However, the Premier Medical Centre in a notice of objection filed before the court by a Lagos lawyer Barrister Adebowale Kamoru, is praying the Court for the following orders:
An order of the Court staying proceedings in this suit and/ or hearing of all pending applications or processes filed or to be filed by the Petitioner, pending the hearing and determination of the instant application
An order of the Court dismissing and/or striking out this suit for want of jurisdiction and/or non-disclosure of reasonable cause of action.
Dr. Oshinowo verses the Premier Specialist Medical Centre Ltd and such further or other order(s) as the Court may deem fit to make in the circumstances.
Further take notice that the grounds upon which the instant application is brought are as follows:
The claims constituted in this suit are labour/employment-related matters to the extent that the said claims from the face of the Petitioner’s plea documents arose from unpaid salaries.
By the provision of Section 254(2)(c) of the Constitution of the Federal Republic of Nigeria (as amended), the vires to entertain labour/employment-related claims, which the claims as presented by the Petitioner in this suit, resides with the National Industrial Court of Nigeria.
The instant suit does not in any way relate to the operation and interpretation of the provisions of the Companies and Allied Matters Act, 2020.
By reason of the above, this Court lacks the jurisdiction to entertain and/ or adjudicate on this suit.
Meanwhile, the presiding Judge Akintayo Aluko has adjourned till 30th of January,2023 for hearing.