High Court hears control dispute over Directline Assurance company

The dispute dates back to September last year when Directline’s Chief Executive Officer moved to court seeking to have Royal Media Services (RMS) chairperson Dr S.K. Macharia cited for contempt. 

The CEO accused Dr. Macharia of unlawfully storming the company’s offices, dissolving the board, and appointing new management in defiance of existing court orders.

At the time, the High Court barred Royal Media Services from airing advertisements related to Directline, ruling that the broadcasts posed a risk to the insurer’s financial stability.

Despite the ongoing legal proceedings, Dr. Macharia, who is both the chairman of Royal Media Services and the majority shareholder of Directline Assurance Company, has appointed new officers to take charge of the company’s operations.

Speaking during the takeover at Directline’s headquarters at Anniversary Towers, Dr Macharia named Wilson Wambugu Maina as the acting Chief Executive Officer. 

Stella Kinoti was appointed Chief Finance Officer, assisted by Elizabeth Kuria, while James Mari was named Information Technology Manager.

Dr. Macharia also announced the dismissal of former Directline chief officer Sammy Kanyi, stating that the changes would take effect immediately.

He expressed confidence that the newly appointed team would effectively deliver on its mandate as the case over the company’s control continues before the court.