Oasis Demands KADOKAWA Change
Oasis calls for KADOKAWA management change after second JFTC warning against the company
A second regulatory blow is heading toward KADOKAWA Corporation. The Japan Fair Trade Commission (JFTC) is preparing to issue a formal recommendation against KADOKAWA for violating Japan's Freelance Protection Act, according to The Nikkei. The alleged violations include failing to give written contracts and delaying payments to more than 100 freelance writers and illustrators.
Activist investor Oasis Management responded swiftly on June 9, 2026. Oasis, which holds roughly 13.76% of KADOKAWA shares, called the report further proof that CEO Takeshi Natsuno must go. The company's 2026 Annual General Meeting (AGM) is scheduled for June 24, according to Business Wire.
KADOKAWA's Growing List of Regulatory Violations
This is not the first time the JFTC has come after KADOKAWA. In November 2024, the regulator issued a formal recommendation for Subcontract Act violations. KADOKAWA had slashed payments to 26 subcontractors — including 21 freelancers — by as much as 39.4%, according to News On Japan. That move was ruled an illegal "unjust price cut."
Now a second case is building. Japan's Freelance Protection Act took effect on November 1, 2024. It requires companies to give individual contractors written agreements with clear payment terms. KADOKAWA allegedly ignored these rules for over 100 creators, markets.financialcontent.com reported. Legal experts say KADOKAWA could be one of the first major firms to face a formal JFTC action under the new law.
Oasis Says Natsuno Must Be Voted Out on June 24
Oasis launched a full campaign to remove Natsuno from KADOKAWA's board. On May 13, 2026, Oasis filed a formal shareholder proposal to dismiss him as a director, according to Reuters. One day later, the KADOKAWA board voted to oppose the proposal. The board said Natsuno was essential for "crisis management" following a major ransomware attack in June 2024.
Oasis rejected that defense. The fund said repeated legal violations show "a profound lack of oversight" under Natsuno's watch. Under his five-year tenure, KADOKAWA's earnings per share fell by 89% and return on equity collapsed from 8.2% to just 0.5%, according to Morningstar. Oasis called KADOKAWA a "mismanaged treasure trove" and urged all shareholders to vote for change.
Sony's Silence Could Decide the Vote
The most powerful swing vote belongs to Sony Group. Sony spent roughly ¥50 billion ($318 million) in late 2024 to raise its stake to around 10%, making it KADOKAWA's largest single shareholder, according to Game Developer. Sony has not publicly said how it will vote on the Oasis proposal.
KADOKAWA owns FromSoftware, the studio behind the global hit Elden Ring. Sony has long coveted KADOKAWA's gaming and anime assets. Some analysts believe Sony may prefer to keep KADOKAWA's management weak to reduce the cost of a future full acquisition. If Sony sides with Oasis, Natsuno's removal is almost certain.
Freelancers and Creators Bear the Real Cost
Beyond the boardroom battle, real workers are at the center of this story. More than 100 freelance writers and illustrators were allegedly left without proper contracts or timely pay, according to The Nikkei. These creators form the backbone of KADOKAWA's publishing and media businesses, which span books, manga, anime, and film.
Oasis warned that the pattern of violations risks driving away the very talent KADOKAWA depends on. "KADOKAWA's creative businesses depend on the trust and commitment of the creators," the fund said in its June 9 statement, as reported by uk.finance.yahoo.com. Experts say that if creators begin to leave, the long-term damage to KADOKAWA's IP pipeline could far outweigh any short-term cost savings.
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