Photo credit: Sen. Win Gatchalian

The corporate landscape in the Philippines has seen yet another shakeup, this time involving Lucky South 99 Corp., formerly known as Lucky South 99 Outsourcing Inc. If you’re wondering what happened, why it matters, and who’s involved, let’s break it down.

The Backstory

Lucky South 99 Outsourcing Inc. was a company initially set up to offer business process outsourcing (BPO) services. They started off with grand plans to provide front and back office services, customer support, and even web design. It was all laid out in their Articles of Incorporation when they registered on October 2, 2019.

Fast forward to February 2024, the company decided to change its name to Lucky South 99 Corp. and amend its business purpose. The new game plan? To dive into the world of gaming and entertainment, focusing on live gaming content streaming and establishing gaming sites.

The Trouble Begins

Despite these changes, the company found itself under scrutiny. It turns out that Lucky South 99 Corp. had been dabbling in activities that weren’t exactly aligned with what they were supposed to be doing. Specifically, they were identified as one of the Offshore Gaming Licensees, which caught the attention of regulators. This was problematic because their registered purpose was far from what they were actually doing—running gaming operations without proper amendments to their corporate documents.

The Investigation

The Department of Interior and Local Government (DILG) didn’t take this lightly. An advisory was issued back in September 2022, highlighting the illegal operations of a POGO (Philippine Offshore Gaming Operator) facility in Pampanga under the same name. This discovery led to the issuance of a Show Cause Order by the Securities and Exchange Commission (SEC) on July 8, 2024.

Lucky South 99 Corp. and its stockholders were asked to explain why they shouldn’t face sanctions for violating the Revised Corporation Code of the Philippines, specifically Section 44, which prohibits corporations from engaging in activities beyond what’s stated in their Articles of Incorporation.

The Aftermath

Despite the orders being sent out, the company’s responses were less than satisfactory. In fact, some of the orders weren’t even successfully delivered because the addresses were deemed restricted areas. As a result, the SEC moved forward with a revocation of the company’s registration.

This move essentially means that Lucky South 99 Corp. is no longer recognized as a legitimate corporation under Philippine law. The revocation serves as a reminder to businesses that they must adhere strictly to their registered purposes—or face serious consequences.

What’s Next?

For those involved in or doing business with Lucky South 99 Corp., this revocation is a significant event. It not only nullifies the corporation’s legal standing but also highlights the importance of transparency and compliance in the corporate world. Companies must ensure that their activities align with their registered purposes, and any changes must be properly documented and approved.

This incident also underscores the ongoing efforts of the SEC and other government bodies to clamp down on unauthorized business activities, especially in sensitive sectors like gaming and online gambling.