THE Court of Appeals upheld its decision denying the camp of former Health secretary Alfredo Bengzon to regain control and management of the posh The Medical City (TMC) and its network of hospitals and clinics.
This as the CA, in a decision, affirmed the management and control of TMC to the 2019 Board of Directors led by Bengzon’s nephew, Xavier Gonzales, who was elected by investors and shareholders in an election last July 2019.
In his motion for reconsideration, Bengzon sought to invalidate the Special Stockholders Meeting held in 2018 that voted him and his allies out of TMC.
But the CA ruled: “Our construction and application of corporate laws are geared toward ensuring stability and predictability…we veer away from uncertainty and unreliability and towards efficient corporate governance.”
“By our lights, the holding of the election of PSI’s (Profession Services Inc.) 2019 Board of Directors on July 9, 2019 being left unquestioned, any ruling on the Sept. 13, 2018 Special Stockholders Meeting is now futile,” the CA said.
The CA’s decision toward better corporate governance may have a corresponding impact on the other cases of Bengzon, who has been trying to win back control despite having only 1 percent of TMC shares.
Bengzon and his daughter-in-law Margaret Bengzon were charged with alleged theft and estafa, as an internal audit revealed that they issued TMC checks for nonhospital related transactions.
Since taking control of TMC, the Gonzales-led board and the management team, has implemented reforms that resulted in “record-breaking” revenue for the hospital network in 2019, growing four times faster than what the previous management was able to do. TMC was also awarded Hospital of the Year by HealthCare Asia Awards 2020.
