In re Solid Technical Services, Inc.

January 16, 2008 SEC EN BANC CASE NO. 09-07-0186 IN THE MATTER OF SOLID TECHNICAL SERVICES, INC. (S.E.C. REG. NO. 1266813) , petitioner . FOR: SETTING ASIDE ORDER OF REVOCATION O R D E R Petitioner Solid Technical Services, Inc. is a stock corporation registered with the Commission on 23 May 1985. 1 Petitioner was organized primarily to engage in and to undertake the business of repairing, repainting, reconditioning, rebuilding, retooling, reboring, refacing, reconstructing, and overhauling of all types of engines, motors, machinery, mechanical apparatus, and contrivance whatsoever. 2 Its principal office is located at No. 205 Rizal Avenue Ext., Grace Park, Caloocan City. On 29 September 2003, petitioner's Certificate of Registration No. 126683 was revoked by virtue of SEC Order dated 20 August 2003 for non-compliance with the Commission's reportorial requirements. The said order was published in a newspaper of general circulation on 28 August 2003. Petitioner seeks reconsideration of the Order revoking petitioner's registration based on the following grounds: 3 1. Petitioner is currently in operation as a "Five-Star" machine shop, engineer re-builder, metal and steel fabricator. 2. Petitioner is currently registered with the Department of Trade and Industry. 3. Petitioner has been filing its Income Tax Returns with the Bureau of Internal Revenue. 4. Petitioner provides jobs to fifty-three (53) people with regular employment status. Out of this number, 12 are office workers, 37 are machine operators, mechanics and technical supervisors and four (4) are retainer professionals. ESTCDA 5. Petitioner also employs at least 25 field sales representatives on commission basis. 6. All the regular employees and field sales representatives as well as their families are dependent upon the petitioner for their basic needs such as food, clothing, shelter, medical care and education for their children. 7. The continued operations of petitioner will also contribute to the economic well-being of the community through petitioner's payment of local taxes and business permits. 8. The continued operations of petitioner will also benefit the owners and employees of the companies that are dealing with the petitioner as suppliers of machineries, spare parts and shop supplies. As proof of its intent to continue its operation, petitioner submitted copies of the following: 1. Mayor's Permits for the years 2005-2007 issued by the Mayor of the City of Caloocan; 2. Certificate of Business Name Registration issued by the Department of Trade and Industry on 10 September 2003 and is valid until 10 September 2008; and 3. 2006 Audited Financial Statements. Petitioner further alleges that it has no intention to violate the law and henceforth, commits to comply with the rules and regulations of the Commission regarding the submission of reports. As a matter of fact, petitioner already paid the penalty in the amount of Twelve Thousand Five Hundred Pesos (Php12,500.00) on 07 September 2007 as evidenced by Official Receipt No. 0093795. In a related issue, petitioner's authorized capital stock as approved in the Articles of Incorporation is Three Million Pesos (Php3,000,000.00). On the other hand, based on petitioner's General Information Sheet, its authorized capital stock is Eight Million Three Hundred Thousand Pesos (Php8,300,000.00). Apparently, there is a discrepancy between the two documents. In view thereof, petitioner is hereby directed to amend its Articles of Incorporation to reflect its actual authorized capital stock, pay the corresponding penalty for the unauthorized issuance of shares, and to submit compliance therewith within thirty (30) days from receipt of this Order. Failure on the part of petitioner to comply with this directive shall cause the recall of the instant Order. CSDTac WHEREFORE, premises considered, the Order of the Commission dated 20 August 2003 revoking the Certificate of Registration of SOLID TECHNICAL SERVICES, INC. is hereby SET ASIDE. Petitioner is likewise ordered to amend its Articles of Incorporation to reflect its actual authorized capital stock and to pay the corresponding penalty for the unauthorized issuance of shares. Let a copy of this Order be furnished the Company Registration and Monitoring Department and the Economic Research and Information Department of this Commission for their appropriate action. SO ORDERED. Mandaluyong City. January 16, 2008. (SGD.) FE B. BARIN Chairperson (SGD.) MA. JUANITA E. CUETO Commissioner (SGD.) JESUS ENRIQUE G. MARTINEZ Commissioner (SGD.) RAUL J. PALABRICA Commissioner (SGD.) THADDEUS E. VENTURANZA Commissioner Footnotes 1. Petitioner's Certificate of Registration. 2. Petitioner's Articles of Incorporation, 2nd Article. 3. Undated Supplemental Petition, pp. 1-2.