Com. "Nani" Encarnacion

May 22, 1998 Com. "Nani" Encarnacion and Mr. Placido O. Urbanes, Jr. Catalina Security Agency, 154 Araneta Ave.,Quezon Ave. Quezon City Madam/Sir : This refers to your request for a review and reconsideration of the letter of the Corporate and Legal Department (CLD) of this Commission dated April 1, 1998 addressed to the Chief Corporate Attorney of the National Power Corporation, Atty. N. L. Baban, relative to the status of Catalina Security Agency, Inc. stating that " as far as the SEC is concerned, it continues to exist as a corporation, notwithstanding its non-operational status, until its certificate of registration is officially revoked by the Commission or dissolved in accordance with law ". Please be advised that the Commission En Banc ,after deliberation on the present status of Catalina Security Agency, Inc. in its meeting of May 21, 1998, confirmed the above CLD statement. The Commission will take action on the non-operational status of said corporation only after the lapse of the two (2)-year period as prescribed under Section 22 of the Corporation Code. For purposes of information, please find enclosed herewith xeroxed copies of the previous SEC opinions stating that a corporation continues to exist as such despite its failure to organize and commence its business, until its dissolution or revocation has been officially declared by the Commission. ( Ltr. to Mr. Reynaldo L. Hernandez, dtd. 5/4/95; Ltr. to Atty. Pedro Z. Claravall, dtd. 10/4/89; Ltr. to Mr. Ling Haw Kee, dtd. 12/10/85 ) Likewise, enclosed herewith is a Memorandum dated May 21, 1998 issued by our Records Division on the present status of Catalina Security Agency, Inc. Please be advised accordingly. Very truly yours, (SGD.) PERFECTO R. YASAY, JR. Chairman