Online Reporter
Martin Kadzere
Premier Service Holdings, the parent company of Premier Service Medical Aid Society (PSMAS) and Premier Service Medical Investments (PSMI) until 2022, has been placed into voluntary liquidation.
Corporate lawyer and chartered accountant, Mr Godknows Hofisi, has been confirmed as the final liquidator.
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According to the court application filed by Mawere Sibanda Commercial Lawyers, Premier Services Holdings’ legal representatives, the liquidation was initiated under Section 5 (1)(a) of the Insolvency Act.
This specific provision allows a company to seek liquidation if it has passed a formal resolution to be wound up, provided there are no legal or contractual barriers preventing such a decision.
The application argued that the liquidation order was justified because the company had resolved to wind up its affairs and faced no legal or regulatory impediments to doing so.
Furthermore, the company’s financial stability was severely impacted in August 2022 when the Ministry of Health and Child Care, acting as the industry regulator, ordered it to stop collecting management fees from medical aid subscribers.
The ministry further directed the company to cease all interference in the affairs of PSMAS and PSMI.
As a result, the company’s operations have become entirely unsustainable, as it faces existential challenges stemming from regulatory conditions, which constrained its ability to generate income and fund its activities.
