Universal Entertainment Corp says it won’t be subject “to any operating restrictions, risks or disadvantages nor see its business activities impeded” by the company’s decision to exclude founder Kazuo Okada last week.
Universal announced a new board on Thursday that saw Mr Okada omitted as Chairman following allegations that he misused company funds for his own personal benefit, with a Special Investigation Committee currently looking into three alleged cases from 2015.
The Japanese gaming mogul has also been ousted as a director of Universal’s majority shareholders Okada Holdings Ltd, which owns a 67.9% stake.
In a Friday statement, Universal said it is “neither likely to be subjected to any operating restrictions, risks or disadvantages nor see its business activities impeded due to belonging to the corporate group comprising the parent company and other companies.
“Moreover, its decision-making for business activities is done independently, which has led us to understand that a certain level of independence is secured by the Company,” it said.
“No change is planned to be made to the Company’s future position in the corporate group and relationship with the parent company and other companies.”
Universal added that while Okada Holdings Ltd is not required to prepare non-consolidated financial statements due to the laws and established practices of the country in which it operates, it will “continually request Okada Holdings Limited to prepare and provide financial reporting data. After its consolidated financial statements are prepared by Okada Holdings Limited, the Company will disclose them,” it said.
Latest ownership numbers releases by Universal on Friday show that Mr Okada owns 46.38% of Okada Holdings Ltd. It is believed that his son Tomohiro who owns 43.48% and daughter Hiromi used their combined majority to ouster Mr Okada as a director of Okada Holdings Ltd.
In the meantime, Mr Okada’s wife Takako remains a director of Universal Entertainment with Jun Fujimoto re-appointed President, CEO and CIO, Hajime Tokuda re-appointed COO and Kenshi Asana CFO with the number of outside directors boosted from two to three.
“The Company believes that the new structure will enhance shareholder value by allowing management to operate in a more efficient manner and strengthening corporate governance procedures,” it said.
