Universal Entertainment, the parent company of Okada Manila, has announced significant leadership changes, signaling a new chapter in its corporate governance. The company has called for an Extraordinary General Shareholders’ Meeting on September 19, 2024, to vote on two key issues: the dismissal of former President and CEO Jun Fujimoto from his role as a Director and the election of Tomohiro Okada, the son of the company’s ousted founder, Kazuo Okada, as a new Director.

A new era with Tomohiro Okada:

The upcoming shareholders’ meeting marks a pivotal moment for Universal Entertainment as it looks to bring Tomohiro Okada into a leadership role. Tomohiro, currently a Director of the company’s parent entity, Okada Holdings, holds a controlling 53.27% stake in the firm. His father, Kazuo Okada, who founded Universal Entertainment, was removed from the company in 2017 under contentious circumstances, leading to a deep rift between father and son.

Universal Entertainment highlighted the strategic rationale behind Tomohiro’s proposed election, stating, “In order to further strengthen the company’s business activities in Japan and overseas, the company proposes to increase the number of directors by one and to appoint Mr. Tomohiro Okada … as a director.” This move is seen as an effort to consolidate control within the Okada family while steering the company towards a more stable future, following years of corporate turmoil.

Jun Fujimoto, who has served as a key figure in Universal Entertainment’s leadership, is now facing removal from his position as a Director. Fujimoto’s fall from grace began with a Tokyo High Court ruling in April 2024, which found him guilty of breaching his fiduciary duties. The court determined that Fujimoto had orchestrated the transfer of nearly $43.5 million to an external party without proper justification and without adhering to the company’s internal decision-making processes.

As Asia Gaming Brief reports, Universal Entertainment made its stance clear: “It is appropriate to dismiss Mr. Jun Fujimoto from his position as a director of the company in order to ensure thorough compliance and maintain a sound governance of the company.” The dismissal is intended to reinforce the company’s commitment to governance and compliance, both of which have been areas of concern in recent years.

Fujimoto, who stepped down from his active roles within the company earlier this year, had been embroiled in a series of legal disputes. Notably, Fujimoto played a critical role in the 2017 ousting of Kazuo Okada, which adds a layer of complexity to his current situation. Universal Entertainment’s leadership struggles have been well-documented, with both Fujimoto and Kazuo Okada previously being targets of a lawsuit in 2015, brought by shareholder Tsuyoshi Hosoba. The lawsuit accused them of breaching fiduciary duties, including improper payments related to the Okada Manila project.

Implications for Universal Entertainment:

Inside Asian Gaming reports that the leadership reshuffle at Universal Entertainment is part of a broader effort to stabilize the company after years of legal battles and internal conflicts. The company’s decision to bring Tomohiro Okada into the boardroom signals a possible shift towards a more consolidated and focused leadership structure, one that aims to resolve lingering issues from the past and chart a clear course for future growth.

Meanwhile, the dismissal of Jun Fujimoto underscores the company’s determination to distance itself from past controversies and reinforce its commitment to transparency and proper governance practices. The outcome of the Extraordinary General Shareholders’ Meeting will be closely watched by industry observers, as it could mark the beginning of a new era for Universal Entertainment, one that seeks to move beyond its troubled history and focus on expanding its business both in Japan and internationally.