- The hospital is owned by KHA, whose members elect the board of directors
- KHA wants the board of directors sent home, citing mismanagement
Image: FILE
The High Court has stopped a meeting called by Nairobi Hospital's owners amid a huge fight with its board of directors.
The hospital is owned by KHA, whose members elect the board of directors. The board then appoints the CEO.
Justice Peter Mulwa has twice issued orders to stop meetings; the first meeting was an AGM called by the board and the second was an extraordinary meeting called by members of KHA.
KHA wants the board of directors sent home, citing mismanagement.
"Pending the hearing of this application inter parties and determination, a temporary injunction order is hereby issued ex-parte (in presence of only one party) to restrain the respondents from holding an extraordinary general meeting," Justice Mulwa said in his orders.
He certified the matter as urgent and set October 8 as the date for further directions.
The respondents are all the 400 members of the association.
Its board of directors, including chairman Chris Bichage and vice-chairperson Philemon Mwaisaka, are listed as interested parties.
Other members of the board of directors are Philip Nyamu, Fred Kambuni, Magdalene Muthoka, Barcley Onyambu, Herman Manyora, Benjamin Gikonyo, Geoffrey Ng'etich, John Mwero, Jaldesa Waqo, Peter Waweru, Samson Kinyanjui and Valerie Gaya.
The members through senior counsel Ahmednasir Abdullahi have gone to court, seeking to set aside the orders stopping the extraordinary meeting.
They argue that the court overstepped its mandate in intervening when it is the members who called for the meeting, as per their association rules.
Ahmednasir said the court was not told the whole truth before it issued the orders.
The said meeting was called to discuss the removal of the board of the Nairobi Hospital Association.
The senior counsel argued that the court ought not to have allowed itself to be dragged into boardroom wars and members' quest for justice.
He faulted the judge for issuing the injunction orders yet the Companies Act and Articles of Association allows members to call for such a meeting.
"The instant suit is a desperate attempt by the plaintiff and a gross abuse of the judicial process to use the court to shield against lawful proceedings. It is an exemplification of cowardice," Ahmednasir said in the affidavits.
The lawyer has also taken issue with the duration of the order.
"The said order of the court as issued is highly illegal and irregular, that it is by that effect null and void for contravening provisions of the Civil Procedure Rules which obligate that an ex parte injunction shall not be issued for more than 14 days," he said.
As such, the members want the judge to set aside his orders and allow them to proceed with their meeting.
"All issues will be addressed at the floor of the meeting, where the plaintiffs will have an opportunity to defend themselves and members will either pardon them or send them home."
And as the war at Nairobi Hospital continues, three board members have already resigned.
That hospital has since issued a memo informing members that the court has stopped the AGM that was scheduled for September 27.
"This order shall subsist until October 8, 2024 when the court shall issue further orders or directions. We shall keep you apprised on any further development," the hospital said in a memo dated September 24 and signed by company secretary Gilbert Nyamweya.