The immediate past Managing Director of SIC Insurance Company Limited, Ms. Hollistar Duah-Yentumi, has taken legal action against the company and her successor, James Agyenim-Boateng, over what she claims to be an unlawful termination of her contract.

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Her lawsuit, filed on February 4, challenges the decision to replace her after President John Dramani Mahama announced Mr. Agyenim-Boateng as the new Managing Director of SIC on January 27. Ms. Duah-Yentumi contends that her appointment was contractually binding until January 1, 2028, and any attempt to remove her before then violates her employment agreement.

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“Under and by virtue of the agreement, the Plaintiff’s tenure as the Managing Director is for a period of four years, thus expiring on the 1st day of January 2028 or soon thereafter as may be agreed upon by the Board of Directors of the 1st Defendant and the Plaintiff,” she stated in her suit.

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She further asserts that the terms of her employment were governed exclusively by the contract she signed with SIC, emphasizing that any changes to her tenure should align with the agreement.

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“The Plaintiff therefore states that all terms relating to and regarding the Plaintiff’s employment as the Managing Director of the publicly listed company such as the 1st Defendant is governed solely by the employment agreement executed by the parties.”

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Challenging the legality of her removal, Ms. Duah-Yentumi pointed to Clause 7 of her contract, which stipulates that her employment could only be terminated by the company’s board of directors or by a decision of all shareholders at an Annual General Meeting convened for that purpose.

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“Regarding the termination of the Plaintiff’s employment, Plaintiff states that under and by virtue of clause 7 of the agreement, the Plaintiff’s employment may only be terminated by the board of directors of the 1st Defendant or by all the shareholders of the company acting at an Annual General Meeting for the said purpose.”

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Her lawsuit is requesting the High Court to declare her dismissal unlawful and to nullify the appointment of Mr. Agyenim-Boateng as the new Managing Director of SIC.

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She is also seeking an order for the company to compensate her with full salary and benefits for the remainder of her contract.

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“An order directed at the Defendants to make payment of the Plaintiff’s entire salary and benefits for the unexpired term of the employment contract, which benefits, and salary are pleaded in paragraphs 11 and 12 above.”

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The case is expected to test the limits of executive appointments and contractual obligations in public institutions.

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