, Inc.

(MKSE)The petition sought: (1) to nullify the Resolution dated 3 June 1993 of the
MKSE Board of Directors, whichallegedly deprived him of his right to participate equally in
the allocation of Initial Public Offerings (IPO) of corporations registered with MKSE; (2)
the delivery of the IPO shares he was allegedly deprived of, for which hewould pay
IPO prices;.SICD granted the issuance of a Temporary Restraining Order to enjoin
petitioners from implementing orenforcing the resolution of the MKSE. they also issued a
writ of preliminary injunction for the implementation orenforcement of the MKSE Board
Resolution in question.On March 11,1994, petitioners filed a motion to dismiss on the
following grounds: (1) Petition becamemoot due to the cancellation of the license of the MKSE (2)
The SICD had no jurisdiction over the petition and (3)the petition failed to state a cause of
action. However, the SICD denied petitioners motion to dismiss.
ISSUE:Whether or not the petition failed to state a cause of action.