Okada Manila Parent to Let Shareholders Determine Ousted President's Fate
Universal Entertainment Corp, the parent company of the Okada Manila integrated resort (IR) in the Philippines, has announced an extraordinary general meeting (EGM) of shareholders. The topic at hand is the potential dismissal of Jun Fujimoto from the company's board of directors, which the shareholders will have to determine.
The Okada Manila integrated resort in the Philippines at night. (Source: Booking.com)
LISTEN TO THIS ARTICLE:This meeting is slated for September, with a specific date to be confirmed in the following weeks. The announcement follows a series of legal and managerial upheavals within the company, highlighting the intricate dynamics of corporate governance and accountability.
Related: Casino Operator Universal Entertainment Loses President over Payment ScandalUniversal Entertainment recently disclosed that it had initiated appropriate actions to secure its right to seek damages from Fujimoto, who resigned from his presidential role in April. Despite stepping down, Fujimoto maintained his position within the company as a board director.
Universal Entertainment clearly believes that his continued presence is detrimental to the company's interests and has taken steps to remove him entirely.The ouster came on the heels of a Tokyo High Court ruling related to a shareholder lawsuit initiated in August 2019. The court's decision, which is currently under appeal by Fujimoto, found him responsible for the unauthorized transfer of approximately $43.5 million from Universal Entertainment, a breach of his fiduciary duties and a violation of internal protocols.
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Okada Manila Financial State Weakens
The repercussions of these internal conflicts are reflected in the company's financial performance, particularly in the casino sector. Okada Manila's second-quarter casino gross gaming revenue (GGR) witnessed a significant downturn, with a 21.8% decrease compared to the same period last year.
The figures reported by Tiger Resort, Leisure and Entertainment Inc., the promoter of Okada Manila, indicate a GGR of just under PHP8.84 billion (US$151.3 million), a stark contrast to the PHP11.29 billion (US$193.62 million) earned last year. This decline continued into the first half of 2024, with Okada Manila recording a GGR of PHP17.61 billion (US$302 million), marking a 23% drop year-on-year.
The forthcoming EGM represents a critical juncture for Universal Entertainment Corp, as shareholders convene to deliberate on Fujimoto's future with the company and the broader implications for corporate governance. The outcome of this meeting could set a precedent for how the company addresses executive accountability and financial stewardship moving forward.
Amidst these challenges, Universal Entertainment, which recently called off plans to go public on a US-based stock exchange, continues to navigate the complexities of the corporate landscape, balancing legal considerations with strategic business decisions. The resolution of this dispute and the subsequent actions taken by the company will undoubtedly influence its operational ethos and market perception.
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